Taiwan plans to comprehensively tighten export controls on AI chips to China, potentially criminalizing smuggling activities

On June 9 local time, Bloomberg reported, citing informed sources, that as part of ongoing trade negotiations with the United States, Taiwan's authorities are considering implementing stricter controls on artificial intelligence (AI) chips to restrict sales to all mainland Chinese customers—not just specific companies listed on export blacklists such as Huawei.

Taiwanese authorities are reportedly considering following the U.S. lead by comprehensively tightening export controls on AI chips to the mainland. This marks a potential shift from targeting "specific entities" (those on blacklist lists) to covering "all mainland clients," and for the first time, criminalizing smuggling activities.

From "targeted" to "comprehensive"—previously, restrictions primarily applied to entities already on blacklists, such as Huawei. Under the new proposal, the scope would be expanded to include all mainland Chinese customers, with any AI chip possessing computing power exceeding a certain threshold restricted from being sold to the mainland.

This move is largely driven by pressure from the United States. Due to the absence of relevant laws in Taiwan previously, when law enforcement cracked the first smuggling case this May, prosecutors could only charge minor offenses like "forgery of documents." The new regulations will, for the first time, classify unauthorized exports of AI chips as criminal acts.

The new rules will refer to U.S. standards, focusing on high-end AI chips with computing power surpassing a specific threshold. The proposal is still under discussion and has not yet been finalized.

This development may provoke condemnation from mainland China, while also raising concerns among Taiwanese industry players about weakening their global competitiveness. On the other hand, if implemented, the policy would further tighten the channels through which mainland China can access advanced AI computing capabilities.

Original article: toutiao.com/article/1867577476202700/

Disclaimer: The views expressed in this article are solely those of the author.