January 14, 2025 | Policy Brief

‘Safeguard the Most Advanced AI Technology’: Biden Administration Launches New Export Control Regime Targeting China

January 14, 2025 | Policy Brief

‘Safeguard the Most Advanced AI Technology’: Biden Administration Launches New Export Control Regime Targeting China

The United States has expanded its efforts to block China’s access to cutting-edge U.S. technology. In a proposed rule introduced on January 13, the Commerce Department unveiled a series of export restrictions on computer chips critical for developing advanced artificial intelligence (AI) capabilities. Commerce Secretary Gina Raimondo said the regulations are intended to “safeguard the most advanced AI technology … but also enabl[e] the broad diffusion and sharing of the benefits with partner countries.”

When finalized, the regulations — currently open to comment from industry and foreign partners — would introduce a set of export quotas and other restrictions designed to prevent China from circumventing current U.S. export restrictions on AI technology essential for Beijing’s efforts to modernize its military.

Regulations Stand Up New Framework for Accessing American AI Technology

In addition to slightly expanding pre-existing restrictions on Russian and Chinese purchases, the announced rule establishes a tiered system of export controls. The rule would make it easier for close U.S. allies and partners, including Five Eyes countries (United States, Canada, Great Britian, New Zealand, and Australia), Japan, South Korea, and Taiwan, to import advanced AI chips, facilitating greater security and intelligence collaboration. Other nations will be subject to a series of import quotas given China’s propensity to exploit third-party countries to gain access to sensitive U.S. technology. In a statement to reporters, National Security Advisor Jake Sullivan noted that the rule “counters the serious circumvention and related national security risks posed by countries of concern … who may seek to use the advanced American technologies against us.”

The regulations, however, provide countries outside the top tier of U.S. allies with ways to expand their access to U.S.-made chips by applying for exceptions or through government-to-government deals. The directive also allows American firms that comply with strict government security standards to export additional chips, though it limits the amount of their AI computing power allowed to reside outside of the United States.

Rules Align With U.S. Efforts to Stymie China’s Growing Military Power

In its effort to become a “world-class” military, the People’s Liberation Army (PLA) has sought to integrate AI into its major weapons systems and command-and-control infrastructure. These efforts have also been aided by China’s policy of military-civil fusion, which compels nominally civilian firms to transfer their technology to the PLA.

The proposed rule builds on previous Biden administration moves to limit China’s access to advanced AI systems. In October 2022, the administration announced a ban on the sale of certain advanced AI chips to China, restrictions it tightened in 2023. In December 2024, the United States also restricted the export of semiconductor production equipment to China and launched an investigation into the country’s semiconductor industry for violating U.S. trade law.

Washington Should Expand Efforts to Disrupt China’s Military Modernization

The incoming Trump administration should finalize the proposed rule and build on it to further restrict Beijing’s access to advanced U.S. technology and financial resources, both of which have fueled the PLA’s rise. Additional steps should include new outbound investment screening measures, restricting access to key materials and software used to produce semiconductors, and working with allies and partners to restrict the sale of advanced AI chips and models.

While holding back Beijing, Washington also needs to drive advances in AI at home. Using President Biden’s recent executive order on leasing federal lands to clean-powered data centers as a model, the new Congress can incentivize accelerated construction of energy-intensive AI infrastructure by prioritizing investments in the resilience of the American electrical grid.

Jack Burnham is a research analyst in the China Program at the Foundation for Defense of Democracies (FDD). For more analysis from Jack and FDD, please subscribeHERE. Follow Jack on X@JackBurnham802. Follow FDD on X@FDD. FDD is a Washington, DC-based, nonpartisan research institute focusing on national security and foreign policy. 

Issues:

Issues:

China Cyber Military and Political Power

Topics:

Topics:

Washington China Joe Biden Donald Trump United States Congress Beijing Canada Chinese South Korea Japan Australia Taiwan Jake Sullivan New Zealand People's Liberation Army United States Department of Commerce Artificial intelligence Jack Burnham