US Semiconductor ban to China triggers AI Concerns

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United States has stopped semiconductor exports to China as it wanted to halt the development of AI projects in the Xi Jinping led nation. But trade analysts suggest the move could trigger major concerns and could backfire by putting a permanent dent to the GDP of America.

Speaking the same at the Bloomberg’s New Economy Forum in Singapore, Ken Griffin, the CEO of Citadel, added that a hit between 5% and 10% could be observed, if this continues, pushing the entire economic activity into great depression.

The US can not produce copious amounts of silicon components that are needed to run the economy. And instead has to buy it from Asian nations and label it on its own to surpass any trade barriers put forth by Biden administration.

To deteriorate things, the Commerce Department has banned companies from exporting their goods to Chinese companies as they are being induced with US Technology and China doesn’t want any American tech that is running on US bound software or hardware, as it fears espionage.

Even the green card holders were asked not to work for Chinese companies or any of such business projects and have requested those already working on the job to quit.

China wants a lot of silicon wafers as it is inducting a lot of revenue into such projects that could be worth $4 billion. And as per a news report published in Reuters in Feb this year, most of those AI projects was connected to surveillance of its own country citizens or populace of other nations.

Since, all these projects connected to Artificial Intelligence are working against the likes of Biden administration, the white house is planning to curtail the export of semiconductors to China, as it might help in blocking the projects at least for a few years or till alternatives are available to Xi Jing Ping led nation.

NOTE– After Russia, China is the only nation currently that can pay the demanded sum to America for semiconductors that are used to produce computers and smart phones. And if this revenue is lost, it can bring a kind of economic instability, say experts.

Hope it does as extradition from nations like Russia and China is almost next to impossible!

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Naveen Goud is a writer at Cybersecurity Insiders covering topics such as Mergers & Acquisitions, Startups, Cyber Attacks, Cloud Security and Mobile Security

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