Biden Administration Expands Trade Blacklist for Chinese Firms

In a recent move, the Biden administration has added 14 more Chinese companies to its trade blacklist, following calls for comprehensive restrictions on AI chip exports. This action increases the total number of firms on the blacklist to 25, as reported by the Associated Press.

Among the most notable companies added to the list is Sophgo, a subsidiary of Bitmain. Sophgo gained significant attention for its role as a link between the struggling Chinese tech giant Huawei and the Taiwanese chip manufacturer TSMC.

Concerns regarding Sophgo emerged in December when it was discovered that a chip found in Huawei’s Ascend 910B AI processor was purchased from TSMC through Sophgo. This prompted the Biden administration to announce its intentions to blacklist the firm, a pledge that has now been fulfilled.

This move is part of a broader series of actions taken by the Biden administration in its final days. Shortly before this decision, the administration faced backlash from the tech industry over its "Interim Final Rule on Artificial Intelligence Diffusion." Major American tech company Nvidia criticized the new regulations, describing them as “misguided.”

Nvidia's statement reflects a broader sentiment within the industry, highlighting concerns about the direction of the administration's policies. It notes that previous administrations, particularly the Trump administration, managed AI-related regulations more effectively.

As the Biden administration approaches the end of its term, industry leaders fear that it may undermine America’s technological competitiveness with an extensive 200-page regulatory framework that was created without adequate legislative scrutiny. Critics argue that these new rules could hinder innovation by putting bureaucratic restrictions on the design and marketing of semiconductors, computers, and software.

Interestingly, the blacklisting of Huawei, which has prevented the company from accessing key American technologies like Google's Android and Qualcomm chips, originated during the Trump administration. The future implications of these actions remain uncertain, especially as the incoming administration is expected to maintain a tough stance on China while also promoting American innovation in the competitive field of AI.

Biden, trade, China