US Accused of Being a 'Surveillance Empire' by China Due to Tracking Devices in Chip Shipments
The relationship between the United States and China regarding the export of advanced chips is currently complex, with concerns about potential backdoors and security risks playing a significant role.
In the past few years, the U.S. government has tightened restrictions on the exports of advanced technology, chips, and equipment to China. One of the strategies employed by the U.S. is the secret placement of location tracking devices in targeted shipments of advanced chips to detect diversions to China.
However, the U.S. government has softened some restrictions, allowing U.S. semiconductor companies, notably Nvidia, to sell advanced AI chips like the H20 to China under controlled conditions. This move is seen as a strategic economic move to keep Chinese developers dependent on American chip technology while generating revenue.
Despite this relaxation, very high-performance chips remain off-limits, and only chips below specific performance thresholds can be exported. This cautious approach is driven by the need to balance economic benefits from chip exports with fears of technology leakage, backdoors, or embedded location tracking/security vulnerabilities in chips supplied to China.
The U.S. share of China’s chip imports has fluctuated but shows a trend towards supplying fewer but higher-value chips, reflecting tighter export controls combined with a strategic focus on controlling the types of chips reaching China.
The policy landscape remains dynamic, with recent shifts reversing Biden-era controls and involving Congressional oversight demands on tech export policy.
China has responded to these actions, with its state-run Xinhua news agency criticizing the U.S. government's practices. Xinhua's commentary, titled "America turns chip trade into a surveillance game," accused the U.S. of viewing its trading partners as "rivals to be tripped up or taken down." The agency also stated that if U.S. chips are perceived as Trojan horses for surveillance, customers will look elsewhere.
Xinhua's commentary reflects longstanding accusations from Washington and its Western allies that China could use exported products for surveillance, posing potential security risks. In response to these concerns, China's cyberspace watchdog last month asked U.S. chipmaker Nvidia to explain whether its H20 chips had any backdoor security risks.
Chinese authorities have also cautioned domestic tech firms over their use of H20 chips, according to a recent report by Reuters. The U.S. and China continue to vie for technological dominance, with the issue of advanced chip exports and potential security risks remaining a critical point of contention.
- The world of technology is a contentious area between the United States and China, with concerns about potential backdoors and security risks in advanced chips exported to China being a significant factor.
- The U.S. government's policy regarding the export of advanced technology, chips, and equipment to China is dynamic and has witnessed fluctuations, with tightened restrictions and occasional relaxations.
- Politics and policy-and-legislation play a key role in the U.S.'s approach towards exporting chips to China, as the government balances economic benefits with fears of technology leakage, backdoors, or embedded security vulnerabilities in the chips.
- The general news and crime-and-justice sectors have reported on the ongoing dispute between the U.S. and China over advanced chip exports, with both nations accused of using these exports as tools for economic advantage, surveillance, and potential security risks.
