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A tale (from 12) non-profit, bipartisan policy researcher,
James Andrew Lewis notes, “both China
that restrictions on the export of high- and the U.S. have advantages and disad-
performance GPUs to China will marginally vantages in what is a contest over gover-
affect its data center business. nance as well as investment and research.”
Research and innovation
He says the multinational nature of re-
search and innovation “complicates any
national competition for technological
leadership and will create forces that both
states find difficult to control.”
He points out, “A globally-oriented U.S.
industry may have an advantage over a
AMD’s CEO Dr. Lisa Su holds one of the chipmaker’s products. nationally-focused China.”
The company says it notified its Chinese operations an export
icense will now be needed to export AMD’s Instinct M1250 and
M1250X GPU. (AMD) The support from China’s government,
GPUs for superomputers which has been a key in the past, means
Tom’s Hardware also reported, “AMD does that Chinese companies can continue to
not sell many computer GPUs these days operate even when they are unprofitable,
(and most of them go into supercomputers “inflicting damage on both the Chinese
in the U.S. and Europe), so the new China economny and the economies of other na-
export restrictions won’t significantly im- tions,” CSIS said.
pact the company’s data center business.
China’s government-subsidized expansion
“By contrast, NVIDIA sells a boatload of will squeeze semiconductor firms in other
computer GPUs to clients in China, which is countries, shrinking their income and
why its data center sales may take a $400 number and reducing their ability to invest
million hit this quarter because of the new in R&D.
export requirements.”
Lewis rightly or wrongly believes the
The Department of Commerce restricts the “overall effect of China’s investments” will
export of high-performance GPUs because weaken the global industry and slow semi-
they could be used by the Chinese military conductor innovation.”
or other government agencies in supercom-
puters to make new weapons of war. China: a propensity for exaggeration
He also says that the Chinese government
Restrictions “inevitable” — Intel has a “propensity to exaggerate its tech-
In a Wall Street Journal interview, Intel nological prowess.”
CEO Pat Gelsinger said that the October
restrictions on China were “inevitable” as In reality, says CSIS, “the story is more
America attempts to maintain technological nuanced, with China leading in a few ar-
leadership. eas, such as biotechnology, where Chinese
firms face fewer regulatory hurdles, but
In a 2019 report from The Center for Stra- lagging in many others.”
tegic & International Studies (CSIS), a next page
