The last thing we need right now is a trade war.
Taming inflation with skyrocketing energy prices and geopolitical conflicts is already hard enough.
Unfortunately, we are taking 1 step forward and 2 steps back.
Follow us @KobeissiLetter for real time analysis as this develops.
— The Kobeissi Letter (@KobeissiLetter) October 17, 2023
BREAKING: The United States has just restricted sales of Nvidia, $NVDA, chips to China.
The Commerce Department said exports of AI chips would be "significantly" restricted.
The goal is to limit China's "access to advanced semiconductors that could fuel breakthroughs in AI."… pic.twitter.com/mocZJSzgVv
— The Kobeissi Letter (@KobeissiLetter) October 17, 2023
Biden administration announces new restrictions on exporting AI chips to China
The Biden administration is tightening its restrictions on the export of artificial intelligence chips and manufacturing equipment to China, Commerce Secretary Gina Raimondo announced on Tuesday.
Why it matters: The new restrictions are designed to prevent China’s military from importing advanced semiconductors or equipment.
- “These export controls are intended to protect technologies that have clear national security or human rights implications,” Raimondo told reporters.
- “The goal is the same goal that has always been, which is to limit PRC (People’s Republic of China) access to advanced semiconductors that could fuel breakthroughs in artificial intelligence,” she said.
- “It’s true that AI has the potential for huge societal benefits,” she said. “But it also can do tremendous and profound harm if in the wrong hands and in the wrong militaries.”