The US has announced new rules for exporting computer chips as Joe Biden concludes his presidency. These rules aim to prevent advanced technology from being sent to rivals like China.The outgoing administration of US President Joe Biden on Monday unveiled new export rules on advanced computer chips used in artificial intelligence.

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This proposed framework is seen as an effort to hinder China and other countries from accessing advanced technology.

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"The US leads the world in AI now — both AI development and AI chip design — and it's critical that we keep it that way," Commerce Secretary Gina Raimondo told reporters.

This last-minute Biden administration policy builds on the measures introduced in 2023 that limited the export of certain AI chips to China.

What's in the framework?

The new rules, however, go beyond China.

Authorizations for exports, re-exports, and domestic transfers will be required as part of the stricter controls on chips.

AI data centers will have to meet enhanced security standards to qualify for chip imports.

Most nations could face restrictions. The proposed framework will cap the number of chips they can buy.

But a group of 18 allies — including Canada, Germany, Japan, South Korea, Taiwan, and the United Kingdom — will not be affected by the framework, according to a fact sheet provided by the White House.

How did China react?

Beijing on Monday called the new export rules a "flagrant violation" of international trade rules.

The fresh curbs are "another example of the generalization of the concept of national security and the abuse of export control, and a flagrant violation of international multilateral economic and trade rules", China's Ministry of Commerce said in a statement.

"Previously, US high-tech enterprises, industry organizations, and others have expressed through a variety of channels their dissatisfactions and concerns (…) But the Biden administration turned a deaf ear to the reasonable voices of the industry and insisted on rushing the measures out," it added.

As the framework is set to take effect in 120 days, the incoming administration of President-elect Donald Trump could still make changes to the new rules.

ess/ (AP, AFP, dpa)

(The above story first appeared on LatestLY on Jan 13, 2025 11:30 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).