On Monday, the U.S. Department of Commerce expanded an export rule requiring foreign data centers to apply for approval before purchasing advanced artificial intelligence (AI) chips from the United States to address national security threats primarily from the Chinese Communist regime.
Assistant Secretary for Export Administration at the Department of Commerce Thea D. Rozman Kendler stated in a press release, “Artificial intelligence is a typical dual-use technology. Developing a secure global technology ecosystem in collaboration with industry and partner governments is in line with U.S. national security interests.”
The Bureau of Industry and Security (BIS) of the Department of Commerce stated that while AI has made education and healthcare more accessible, it could also be used in the development of advanced weapons in fields such as networks, chemistry, biology, and nuclear energy.
The Department of Commerce indicated that the U.S. intelligence community has recognized China’s intentions to use AI for “mass surveillance” and create “smart weapon platforms,” prompting the U.S. government to take various measures, including export restrictions, to prevent China from acquiring advanced technology.
Previously, U.S. companies had to obtain licenses before exporting these advanced technologies to Indian and Chinese companies.
The new rule requires foreign data centers possessing advanced AI to apply for approval to become a “validated end user” (VEU) or they will not be able to export.
Deputy Under Secretary of Commerce for Industry and Security Alan Estevez said, “The VEU program for data centers will rigorously review applicants to ensure all authorizations include appropriate safeguards and security measures to protect America’s most advanced technology.”
Data centers must disclose information such as current and potential customers, business connections with entities blacklisted by the Department of Commerce, State Department, Treasury Department, or Pentagon, and security and risk plans, including policies for managing employee access to information.
The Bureau of Industry and Security may also require the government of the country where the data center operates to guarantee on-site reviews, make security commitments, and set reporting requirements.
Several Chinese companies have already been approved as VEU, including the Chinese branch of the U.S. semiconductor company AMD and the new joint venture “Tianjin Boeing Composite Materials Co., Ltd.” in China.
While not mentioning specific governments in the announcement of the rule update, U.S. lawmakers and officials have expressed concern about entities assisting foreign adversaries in circumventing U.S. sanctions.
U.S. diplomats have repeatedly criticized China for aiding Russia’s military efforts, and lawmakers closely monitor China’s relationships with Middle Eastern governments.
The U.S. House Committee on China has urged for investigations into several Chinese companies believed to assist industries sanctioned by Iran and the relationship between an AI company in Abu Dhabi and China.
(Partial reference from related reports by English Epoch Times)