Donald Trump’s administration has taken a firm stance on Chinese technological advancements, cautioning companies worldwide that utilizing Huawei’s artificial intelligence chips could result in criminal liability for violating US export controls, as reported by the Financial Times. The US Department of Commerce has released a statement indicating that Huawei’s Ascend processors are subject to export restrictions due to their high probability of containing American technologies or being manufactured using them.
The Bureau of Industry and Security (BIS), responsible for overseeing export controls, has declared a stricter stance on foreign-made chips. According to the BIS, the use of Huawei’s Ascend chips anywhere in the world would violate US export control regulations. This clarification by the BIS is not a new regulation but rather an affirmation of existing interpretations, informing companies that Huawei chips likely fall under current restrictions requiring export licenses for American technologies.
Export control lawyer Kevin Gump clarified that this declaration reaffirms the interpretation that even the use of Huawei’s integrated circuitry for high-performance calculations is considered a violation of export regulations, regardless of where and by whom it is used. The BIS specified that the restrictions apply to three models of Huawei chips – Ascend 910B, 910C, and 910D – which were likely designed or manufactured using American software, technologies, or equipment of American origin.
These measures come amid increasing concern in Washington regarding Huawei’s significant progress in AI chip development. Huawei is already supplying Ascend 910C clusters to China, claiming superior computing power compared to similar NVIDIA products during large-scale applications. With limited access to NVIDIA products, Huawei is ramping up its production capabilities and domestic deliveries in China, sparking fears that the Chinese tech giant will soon pose strong competition to American companies and global markets.
In April, NVIDIA CEO Jensen Huang acknowledged Huawei as one of the world’s most powerful tech companies and stressed the importance of the US focusing on supporting competition rather than imposing restrictions.