"U.S. lawmakers have tried four times since September last year to close what they called a glaring loophole: China is getting around export bans on the sale of powerful American AI chips by renting them through U.S. cloud services instead. But the proposals prompted a flurry of activity from more than 100 lobbyists from tech companies and their trade associations trying to weigh in, according to disclosure reports."
"And time after time, despite bipartisan attempts, Congress has turned a blind eye to loopholes that allow China to work around its own rules, such as cloud services, third-party resellers, and holes in sanctions passed after the Tiananmen massacre. For example, despite U.S. export rules around advanced chips, China bought $20.7 billion worth of chipmaking equipment from U.S. companies in 2024 to bolster its homegrown industry, a report from a congressional committee this month warned."
U.S. lawmakers proposed closing a loophole that allows China to access powerful American AI chips by renting them via U.S. cloud services four times since September; all four proposals failed. More than 100 lobbyists from tech companies and trade groups engaged to influence the measures. U.S. governments across five Republican and Democratic administrations have allowed or assisted sales of technology to Chinese police, government agencies, and surveillance companies. Congress repeatedly failed to seal loopholes including cloud rentals, third-party resellers, and gaps in sanctions from the Tiananmen era. Despite export restrictions, China purchased $20.7 billion of U.S. chipmaking equipment in 2024, and recent presidential deals further tied U.S. economic interests to tech exports to China.
Read at www.mercurynews.com
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