Chinese companies are going around US semiconductor export bans. So are American companies.

US-led export bans on high-end semiconductors were intended to slow China's development of their own chip industry. These restrictions have clearly backfired, as Chinese companies are quickly innovating through chipmaking milestones much faster than anticipated.

The restrictions have also led companies to find creative work-arounds to access chips on the market. Western companies legally buy the fastest chips and install them on servers, which are then leased to Chinese firms to do cutting-edge work.

Other approaches involve simply setting up new corporate divisions in China, or relocating existing ones, to place operations beyond the reach of US regulators.

In an ironic twist, market prices for the fastest US-built semiconductors are lower in China than in the US, as fierce competition from Huawei is forcing aggressive price cuts by dealers and cloud servicers.

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Wall Street Journal, China’s AI Engineers Are Secretly Accessing Banned Nvidia Chips

Google, Microsoft & Others Reportedly Offering Chinese Customers Access To NVIDIA’s Cutting-Edge AI Servers

Nvidia’s AI chips are cheaper to rent in China than US

SCMP, Intel launches new chip to power Chinese carmakers’ advanced in-vehicle AI initiatives

SCMP, Intel’s new Chinese chip innovation centre is a collaboration with a Shenzhen district, deepening ties amid US scrutiny

Roll Call, Treasury seeks tighter rules on US investment in China tech

The Accelerated Rise of China’s Semiconductor Industry Amid U.S. Export Bans

Reuters, Nvidia cuts China prices in Huawei chip fight

Closing scene, Macau

[Inside_China_Business]

Substack, for video transcripts and direct links:

[kenhollen]

The hubris and stupidity of the American legislators and voter is amazing

[barryshaw]

Our politicians remind me of a two year old child screaming because they can’t have their way. Disgraceful

[laughingkor]

Don't forget "renting" is only temporary; until China produces its own chips. The US is building, isolating, and imprisoning itself with high walls.

[jf-bezy]

I just love the way you present your reports. Keep reporting and I will be here to watch them.

[ChapéuDeAlumíno]

For each sanction, a new market is born.

[SSL_SSL]

When there is a will, there is a way !!! Way to go China !!! At the same time, China is pursuing a path of self-reliance !!!

[misty]

The efforts exerted to slow down China are fruitless. China will figure a way to get what they want and need.

[abdulyusuf]

It was just a matter of time, one cannot fight innovation with tarrifs

[bertanelson]

Trying to stop the flow always results in more problems. So much better to go with the flow. This is true in all aspects of life.

[cheungchingtong]

Calling others nationalist on one hand, passing a Patriotic Investment Act domestically on the other hand.
Trying so hard to show the world how double-standard should be like everyday.

[jjsmith]

this is why the CPC will never let the private sector control them

[johntse]

any smart manufacturer must make use of the Chinese infrastructure and manpower to keep up with the competition, or else they will become irrelevant. so those without presence in China will be left behind real soon.

[freddykruger]

So again, who is hurt by sanctions?
The US consumer is isolated and pays more for goods and services.

[leecheong]

Whatever ban, its too late. Huawei AI chip will only come in to fill the gap.

[ruskoruskov]

There's a demand ....There's profit....therefore there's a supply....don't ya just love free thinking entrepreneurship.... genius....

[wynetsang]

In traditional Chinese society, domestic traders occupy the class just above beggars in the nine class social system. Therefore, traders are used to many restriction set up by the government against them making too much money. Thousand years of these experiences have made the traders very smart in going around government restrictions.

[JooMike-Hi]

Skechers opened a large store in Urumqi, Xinjiang on September 28th.
I am curious about how the lying US gov feels about this?

[PaulMitchell-ujuu]

The USA is like the dinosaurs seeing the asteroid coming but being unable to do anything about it except holler.

[Novideos]

The complex tech world of the 21st century is running circles around the legislators in Congress who are still using 19th century methods to deal with 21st Century challenges and showing no flexibility in mindset and approach to tackle the issues. The solutions they come up with will be flawed and outdated. They need to understand that you cannot legislate through every problem. Just because you are a hammer it does not mean everything you encounter is a nail.