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AI-Tech Standoff Between US And China Spreading To More Nations

AI-Tech Standoff Between US and China Spreading to More Nations

As U.S. President Joe Biden limits investments, the protracted dispute over cutting-edge technology like A.I. persists between the U.S. and China.

High-level artificial intelligence (A.I.) technology has prompted China and the United States to protect their resources to create the most potent systems.

As the Biden Administration declared it would restrict Chinese tech investments in semiconductors, quantum computing, and A.I., a tense relationship is emerging between the two superpowers.

Regulators in other nations expressed worry due to the U.S. action, and lawmakers in the U.K. and the E.U. are debating their following action in response.

The U.S. Protects A.I. And Other Technology

Two executive memoranda about breakthroughs in A.I. were made public by the White House on August 9 in whole or in part. The first described a brand-new way for hackers to compete for financial rewards by utilizing A.I. to protect U.S. infrastructure from cybersecurity flaws.

However, China, Hong Kong, and Macau were classified as “countries of concern” in the second. It was asserted that the United States would control investments in these nations and industries if they “covered national security technologies and products.”

The development of A.I., microelectronics, and quantum information technologies all used semiconductors. According to the report, these industries are “critical for the military, intelligence, surveillance, or cyber-enabled capabilities of a country of concern.”

In the document, it said:

“Rapid advancement in semiconductors and microelectronics, quantum information technologies, and artificial intelligence capabilities by these countries significantly enhances their ability to conduct activities that threaten the national security of the United States. “

Only the nations mentioned above were listed in the note as of this writing, but a Biden administration official told Reuters that additional countries might be added later.

The United States has taken action against foreign investments in Chinese technology and Chinese access to American services and goods.

The sale of semiconductor chips to China, which are required to build robust A.I. systems, was banned by American officials in October 2022, and they have since signaled a willingness to limit their availability further.

China Responds To The American-Chinese Tech Dispute

China promptly stated the official channel of the Chinese Embassy in the United States in response to the Biden administration’s declaration.

According to a Chinese Ministry of Foreign Affairs representative, the country “strongly deplores and firmly opposes” the U.S. government’s “single-minded” actions about its investments in China. It claimed that such a move “overstretches” security ideas and politicizes economic participation.

“This is blatant economic coercion and tech bullying, an act that seriously violates the principles of market economy and fair competition…”

The statement described the action as “de-globalization” and an attempt to remove China from the picture gradually.

China declared it would constantly monitor the situation and fight for its rights. 

China declared it would strengthen its regulations on the export of materials used to make A.I. chips in response to recent U.S. steps to restrict A.I. technologies.

According to sources familiar with the situation, China’s internet goliaths Baidu, ByteDance, Tencent, and Alibaba have all placed multibillion-dollar orders for Nvidia A800 processors because of concern for stricter U.S. regulations, according to a Financial Times report from August 10.

The E.U. And U.K. Evaluate The Most Current Limitations

Foreign regulators promptly reacted to Biden’s stance against China.

According to Prime Minister Rishi Sunak’s office spokesman, the latest instructions explain the U.S. position and the U.K. would consider the steps as it continues to “assess potential national security risks attached to some investments.”

Sunak and Biden agreed to strengthen their partnership in June by developing their ties in cutting-edge technology and artificial intelligence.

On the same day, the European Commission also declared that it would examine the American judgment.

European regulators have been keeping a close eye on advancements in the A.I. industry and were among the first to suggest legislation governing the creation and adoption of the technology.