Biden Administration Adds Chinese Firms to Trade Block List

New Restrictions Imposed on Chinese Companies

Following recent efforts to limit the export of advanced AI chips, the Biden administration has placed 14 Chinese companies on a restricted trade list.

Sophgo: A Key Addition

Among these, Sophgo stands out as a particularly significant addition. As a subsidiary of Bitmain, the company previously garnered attention for allegedly acting as an intermediary between Huawei and TSMC, a leading Taiwanese chip manufacturer.

Concerns were initially raised in December when a chip discovered within Huawei’s Ascend 910B AI processor was traced back to a purchase made by Sophgo from TSMC. The Biden administration had previously indicated its intention to blacklist Sophgo, and this action now fulfills that commitment.

Broader Context and Industry Reaction

This development occurs alongside increased governmental activity as the Biden administration nears its end. The recently announced “Interim Final Rule on Artificial Intelligence Diffusion” prompted a strong reaction from the technology sector.

Nvidia, a prominent American silicon AI company, characterized the new regulations as “misguided.”

Comparison to Previous Policies

The company’s statement acknowledged the effectiveness of previous AI-related sanctions implemented during the first Trump administration. It also directly criticized the current administration’s approach.

It’s worth noting that the sanctions against Huawei, which have prevented the company from accessing US-originated technologies like Google’s Android and Qualcomm chips, were initially enacted during the Trump presidency.

Looking Ahead

The ultimate impact of these actions remains uncertain. The incoming administration is expected to maintain a firm stance towards China. Simultaneously, it aims to encourage innovation within the United States as the global competition in artificial intelligence intensifies.

Here's a summary of the companies affected: