This article was published on [Observer.com].
According to Bloomberg on December 11, local time, when asked how the U.S. Department of Commerce would respond to China's recent breakthrough in chip manufacturing, U.S. Commerce Secretary Raimondo said that the development of the matter is "deeply worrying", but the United States "will actively investigate" and threatened to take "the strongest possible" restrictive actions to protect the United States.
However, Raimondo would not confirm whether the U.S. authorities are launching a formal investigation into Chinese chip companies. In an interview on the same day, Raimondo also claimed that American companies "can, will, and should" export ordinary commercial chips to China, but the United States cannot allow Nvidia to send China's "most complex and highest processing power" artificial intelligence chips.
U.S. Secretary of Commerce Raimondo's data map, picture from ic photo
"Every time we see something worrying, we actively investigate," Raimondo said. Surveys take time. We need them to stick to it, we need to gather information ......We will take all the strongest possible action to protect the United States. She added that the developments were "deeply worrying."
During a visit to Nashwa, New Hampshire, on the same day, a Bloomberg reporter asked the above questions, but Bloomberg said Raimondo would not confirm whether the U.S. Commerce Department has launched a formal investigation into China's chip industry.
This is not the first time Raimondo has been asked about the development of chips in China. Asked about China's new chip breakthrough at a congressional hearing in October, Raimondo said her department needed more resources to tighten control. She reiterated that request at the Reagan Defense Forum in California last weekend. Raimondo continued to ask for money after hyping up "China's semiconductor catch-up", calling on the U.S. Congress to provide more money to the Commerce Department's Bureau of Industry and Security, which is responsible for U.S. export controls.
In addition to answering questions related to Chinese chips, U.S. Secretary of Commerce Raimondo said in an interview with other ** inquiries on the 11th that Biden ** is in discussions with US chipmaker Nvidia to allow Nvidia to provide China with artificial intelligence (AI) chips to a limited extent. A few days ago, Nvidia CEO Jensen Huang revealed that he is cooperating with the United States on chip matters in China.
Raimondo told Reuters: "Given that most AI chips will be used in commercial applications, Nvidia can, will, and should (can, will and should) deliver AI chips to China."
But Raimondo then added that the U.S. cannot allow Nvidia to deliver China's "most sophisticated and highest-processing power" AI chips in case China has the ability to train its cutting-edge AI models.
Previously, on December 2, Raimondo named Nvidia and demanded that the company should "focus on the United States." She also threatened that if companies like Nvidia do something to redesign a chip that would allow China to implement an AI project, "I'll take control the next day."
At the moment, Raimondo is facing pressure on two main fronts. Some U.S. politicians have asked the Commerce Department to increase sanctions, and they continue to unilaterally insist that SMIC's chips violate U.S. sanctions against Huawei, and the U.S. should respond by completely cutting off the relevant companies' best businesses in the United States.
At the same time, U.S. chipmakers are concerned that new U.S. restrictions on chip exports could create opportunities for Chinese competitors. Nvidia currently has more than 90 percent of China's $7 billion AI chip market, but Nvidia warned in its November earnings report that sales in China are expected to fall sharply in the fourth quarter after new U.S. rules are introduced, analysts said.
In response to Raimondo's claim that China poses a major threat to the United States and called for measures to restrict China's access to semiconductors and cutting-edge technology, He Yadong, spokesman for the Ministry of Commerce of China, said a few days ago that China has repeatedly pointed out that the United States has generalized the concept of China, abused export controls against China, restricted two-way investment and other measures, undermined market rules and international economic and trade order, and threatened the stability of the global industrial chain and chain. China firmly opposes this. These measures will not stop China's development and growth, but will only cause American companies to lose the Chinese market and harm their own interests. China will closely monitor the trend and impact of the relevant US measures and resolutely safeguard its own rights and interests.