[Source/Observer Network, Liu Chenghui] "Jensen Huang said that America's chip restrictions have failed, and he is not the only one who thinks so." On May 22, CNBC published an article pointing out that just like NVIDIA CEO Jensen Huang, many analysts and industry insiders also stated that America's chip restriction orders aimed at curbing China's AI development are actually "more harmful than beneficial," causing more damage to American companies while accelerating the development of competitors like China, narrowing the gap in AI capabilities between the two countries.

The article noted that although replacing NVIDIA is no easy task and Chinese competitors still lag behind in cutting-edge technologies by several years, many analysts and industry insiders warned that under the stimulation of U.S. export restrictions, Chinese enterprises are catching up quickly.

American sales restrictions on advanced semiconductor technology (especially in the AI field) have been in place for many years, initially targeting to curb China's military progress and protect America's dominance in the AI industry.

However, Huang recently publicly stated that America's semiconductor export controls to China have already "failed," causing more harm to American businesses than to China.

In an interview on the 19th, he described the cost of America's chip restriction order as "expensive," resulting in a loss of $1.5 billion in sales for his company. He frankly stated that the idea of stopping other countries from obtaining American technology by restricting the spread of AI technology is fundamentally wrong. If American companies do not compete in China's market, then China's technology will spread around the world.

On May 19, Huang delivered a keynote speech at the Taipei Computer Show. Visual China

Roy Wang (Ray Wang), an independent analyst who has long focused on Sino-American tech competition, stated that although the policy has achieved some success in limiting China's access to advanced technology and maintaining America's AI leadership on the surface, policy loopholes and China's existing semiconductor inventory have made it more difficult to achieve the goal, which is part of the reason why the gap in AI capabilities between the two countries has narrowed.

He emphasized that in China's semiconductor and AI sectors, with the implementation of American restrictions, there has been an increase in domestic startups, market opportunities, and AI talent, clearly promoting domestic innovation.

"I think the view that export controls accelerate innovation makes perfect sense," he said.

In fact, chip experts also believe that these restrictive measures are more harmful than beneficial to America. Paul Triolo, partner and senior vice president of DGA Group, said, "These restrictive measures have dual effects; they reduce American companies' ability to enter the Chinese market, which in turn accelerates the pace of innovation in China's domestic industries."

"While cutting off leading enterprises from China's vast market, you are creating competitors for yourself," he added. "The key point is that these restrictions incentivize China to achieve self-sufficiency in its supply chain, something they had never imagined before."

Last month, the U.S. government further tightened its chip export restrictions to China, including the "China-specific" H20 chip in the control list.

Triolo described the U.S. government's "changing goals," stating that the purpose of these restrictions seems to have shifted to slowing and containing the development of China's AI and semiconductors.

"The continuous expansion of these restrictions, combined with the lack of clear articulation of specific ultimate goals, indeed creates many problems and generates much collateral damage," he said, adding that this has led to more questions about the policy.

Earlier this month, the Information Technology and Innovation Foundation (ITIF), an American think tank funded by several tech companies, stated in a declaration that "the Biden administration's export control policy on AI chips has been essentially a failure from the start. However, for many years, it has been doubling down efforts to plug various loopholes."

Stephen Ezell from the foundation told CNBC, "While (the U.S. government) is correct in preventing American companies from selling advanced AI technology to China, it also isolates American companies from the entire Chinese business market, which is a self-destructive approach."

"Export controls have already cost NVIDIA at least $1.5 billion in sales, which is exactly the money companies need to invest in next-generation innovations," he said.

This article is an exclusive piece by the Observer Network and cannot be reprinted without permission.

Original source: https://www.toutiao.com/article/7507923877209752075/

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