In the midst of escalating tensions between the United States and China, of which artificial intelligence chips have been the latest witness, Washington has maintained its punitive tariffs.
Maintaining Trump’s punitive tariffs
On Friday, September 2, the administration of US President Joe Biden announced the maintenance at this stage of the tariffs imposed by Washington on China during the era of former President Donald Trump, some of which were supposed to end on July 6, in addition to To another part on August 23 last.
“The tariffs did not expire on the fourth anniversary of their passage,” the office of US Trade Representative Catherine Taye said in a statement. The punitive customs duties were supposed to end. But as part of the measures, more than 300 US companies have asked to keep it.
The statement explained, justifying the decision, that “representatives of local industries indicated that they benefited from the commercial measures in several ways.”
He added that some sectors, for example, see it as “pushing the Chinese government to stop the policies and practices targeted by customs procedures” or “allowing it to compete with Chinese imports, invest in new technologies, increase national production and hire additional workers.”
They also stressed that this measure “helped combat unfair competitive practices resulting from China’s technology transfer policies and practices and encourage best policies and practices,” according to the trade representative’s statement.
The statement said the US Trade Representative’s office would no longer “review” the tariffs and consider the effects felt by businesses and “the consequences for the US economy, including consumption.”
A first series of punitive customs duties was imposed on July 6, 2018, before three more payments. These duties affect $350 billion in annual imports from the Asian giant.
Donald Trump took these measures in retaliation for Chinese trade practices that were deemed “unfair”. The former Republican president condemned the “theft” of intellectual property or the “forced” transfer of technology.
The Joe Biden administration seemed divided over whether or not to maintain these tariffs, and measures imposed on two lists of Chinese goods worth $200 billion and $126 billion will end on September 24, 2022 and September 1, 2023, respectively.
Artificial Intelligence Chips.. The Newest Stress Ring
The Biden administration is considering steps to restrict US investment in Chinese technology companies, in light of growing tension between Washington and Beijing, Bloomberg reported.
The prospect of the investment restrictions likely come as part of an executive order that Biden will sign in the coming months. The agency indicated the possibility of taking separate action against the “Tik Tok” application.
Bloomberg added that the US Department of Commerce may impose additional restrictions on chips used in artificial intelligence computing.
Meanwhile, the White House is in discussions with Congress on a bill that would require companies to disclose in advance about potential investments in certain Chinese industries. Among the options being discussed is the creation of a system that gives the government the power to block investments completely.
The executive order is part of a broader strategy, as the United States recently halted sales of semiconductors to China and Russia.
And last month, Biden signed into law a bill to bolster the United States’ ability to compete with China, allocating about $52 billion to support domestic research and development of semiconductors.
And the US Department of Commerce suggested a few days ago an update by the end of the year, on steps to protect Americans’ data from applications owned by foreign companies.
As US companies come under increased government scrutiny over the goods they sell to China, the world’s top buyer of chips, from its electronics factories and consumers. Washington has tightened restrictions on sales to Beijing, arguing that it poses a security risk.
Shares of chip maker Nvidia Corp. fell after it announced that new rules on the export of some artificial intelligence chips could cut hundreds of millions of dollars in revenue.
Chip maker Nvidia Corp. said US officials have asked it to stop exporting two top-of-the-line chips for AI work to China, which could cost it $400 million.
Nvidia shares fell 6.6% after hours, and the company said that the ban affecting the A100 and H100 chips, which are designed to speed up machine learning tasks, may interfere with the completion of development of the H100, the main chip it announced this year.
Biden’s executive order is intended to address concerns contained in the National Critical Capabilities Defense Act.