US notifies China of its plans to update rules restricting chip exports

The administration of US President Joe Biden has notified China of its plans to update rules restricting the export of artificial intelligence chips and chip manufacturing tools to China. According to Reuters, this decision is intended to stabilize relations between the world's two largest economies.

The U.S. Department of Commerce, which is responsible for export controls, is working to update restrictions on the supply of advanced technologies to China, which were first introduced last year. The main goal is to limit China's access to more chip manufacturing tools and ensure compliance with new rules similar to those of Japan and the Netherlands, as well as to close potential loopholes related to the export of chips for artificial intelligence.

U.S. officials have informed the Chinese side of their plans to restrict chip exports, indicating the Biden administration's efforts to improve relations with China.

Last year's restrictions were introduced to prevent the use of American technology to strengthen China's military power by limiting its access to advanced artificial intelligence chips.

Liu Pengyu, a representative of the Chinese Embassy in Washington, D.C., has expressed his opposition to such restrictions and believes that the United States is exaggerating its export control and national security measures.

The Biden administration hopes that Chinese leader Xi Jinping will attend the Asia-Pacific Economic Cooperation (APEC) summit in San Francisco in November, and possible new restrictions may be postponed until after the summit to avoid further aggravation of relations.

In the meantime, China is actively working to support its semiconductor industry. The Chinese authorities are planning to launch a new state investment fund worth more than $143 billion to support its semiconductor sector and counter U.S. measures aimed at slowing China's technological development.