China Demands US Remove Tech Export Restrictions After Nvidia Warning

BEIJING — The Chinese government on Thursday called on Washington to lift its technology export restrictions after California-based chip designer Nvidia said a new product could be delayed and some work could be shifted out of China.

The latest checks add to growing tension between the United States and China over technology and security. US officials say they must limit the spread of technology that can be used to make weapons.

Nvidia said it was told last week that it needs a license from the US government to export any product with performance equal to or better than its A100 graphics processing chips to China, Hong Kong or Russia. He said buyers of the A100 and the development of the new H100 could be affected.

But in an amended disclosure Thursday to US securities regulators, the company said the US government was offering relief by authorizing certain chip exports that will allow Nvidia to continue supplying them to US customers until March.

High-end chips are designed to help power data centers and run AI applications. The restrictions do not affect Nvidia’s best-known products used in video games and automotive technology.

Another US chipmaker, Advanced Micro Devices, said Friday that it has also received new licensing requirements from the US Department of Commerce that block the shipment of some of its high-end graphics processors to China and Russia. . But AMD said it’s unlikely to cause product development delays or have a material impact on its business.

China’s Ministry of Commerce has accused Washington of abusing export controls to limit sales of semiconductors to China. He said trade restrictions would disrupt supply chains and the global economic recovery.

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“China is firmly opposed to this,” said a ministry spokesman, Shu Jueting. “The US side must immediately stop its wrong practices, treat companies from all countries equally, including China, and do more to contribute to global economic stability.”

US officials are increasingly concerned about the development of Chinese technology as a strategic threat and potential challenge to US industrial leadership.

Washington has tightened controls and pressured allies to limit Chinese access to the most advanced chips and tools to develop its own. China is spending a lot to develop its new producers, but it cannot make the high-end chips used in smartphones and other more advanced devices.

In an earlier disclosure on Wednesday, Nvidia said it may need to “transition certain operations out of China.” The company said it was requesting exemptions from the US government for its development and support activities.

It said it would try to meet Chinese customers’ needs with products that are not subject to licensing requirements. He said the company can seek a license for customers who need it, but has “no guarantee” that the US government will agree.

Shares of Santa Clara, California-based Nvidia Corp. lost $11.57, or nearly 8%, to close Thursday at $139.37.

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