The US has implemented a surveillance system in chips produced by Nvidia and AMD destined for the Chinese market. This move is part of Washington’s efforts to protect its advanced semiconductor technology know-how from leakage to Beijing.
Experts describe this control as one of the most advanced forms of electronic supply chain management. China, however, views this as a threat to digital autonomy, with the tracking system allowing constant surveillance over information and industrial uses.
Washington has tightened controls on chip exports, including secret tracking systems in high-end microchips for AI applications. The US is also requiring prior authorization for shipments of advanced semiconductors and applying stricter controls at customs.
Beijing has responded by limiting the use of US chips, particularly Nvidia’s H100 models, and encouraging domestic industry growth. This move aims to reduce dependence on US technology and strengthen China’s role in the global value chain.
The new regulations have evident impacts on the global technology industry, including increased costs for companies like Nvidia and AMD due to additional agreements with US authorities. However, Beijing remains a key market for high-performance semiconductors.
Industry experts warn of uncertainty among tech multinationals as risks of blockages and innovation become crucial. China’s counteroffensive aims to reduce dependence on US technologies and strengthen its national industry through increased investments in research and development.
The US chip export control policy is seen as a critical aspect of the global technological tension, with only time telling which power will succeed in shaping developments and internationally shared rules.
Source: https://en.cryptonomist.ch/2025/08/13/spy-chips-and-technological-war-how-the-usa-and-china-face-off-on-high-tech-export