Are U.S.–China Sanctions Really a Pillow Fight?

The enduring trade conflict between the United States and China has resulted in the implementation of sanctions and limitations on cutting-edge processors and technologies for artificial intelligence and high-performance computing. However, Leland Miller, the Chief Executive of China Beige Book, a bespoke market research company specializing in China, holds the viewpoint that the conflict is not as constraining as commonly presented. He likens it to a “pillow fight” rather than a full-scale war and suggests that chipmakers are devising strategies to work around the regulations.

Miller highlights the fact that although the U.S. Department of Commerce may prohibit companies such as Nvidia from selling their top-tier products to China, a functional system exists in which companies can request authorization to sell specific products to China. The Department of Commerce authorizes exports of products that offer lower performance but still belong to the most recent generation of U.S.-developed technologies.

Contrary to prevailing beliefs, Miller stresses that there is no widespread prohibition on sending advanced technology to China, and the approval rate for these technology exports remains high. He observes that many American companies are still actively involved in commerce with Chinese counterparts, indicating that the flow of advanced technology from the U.S. to China continues relatively unabated.

According to Miller, chipmakers are maneuvering through the loopholes in the regulations, enabling them to sustain their exports to China. This presents a different perspective from the widely held belief of a strict embargo on high-tech exports.

While the trade tensions between the two nations persist, the true state of affairs, according to Miller, indicates that the restrictions may not be as stringent as they are portrayed to be.

Anton Shilov is a Freelance News Writer at Tom’s Hardware US, and in his article, he highlights the developments in the technology industry, particularly the impact of U.S.–China trade sanctions and how companies are adapting to these restrictions.

In summary, the ongoing trade conflict between the United States and China does pose challenges for technology exports, but experts such as Leland Miller present an alternative viewpoint, characterizing it as a “pillow fight” and suggesting that chipmakers are devising strategies to navigate through the regulations to continue their exports to China. This nuanced perspective challenges the prevalent narrative of a strict ban on advanced technology exports and provides a different angle to comprehend the complexities of the trade tensions between the two nations.