The US keeps expanding the list of companies banned from acquiring its chip technology and China’s tech industry keeps finding ways to get around it.
After Donald Trump added another 80 firms to the list, Rest of World has listed China’s key tactics:
1 – Smuggle in chips.
About 12,500 chips could be entering the country yearly through this route, according to the Center for New American Security.
One student was paid $100 a pop to smuggle six chips from Singapore to Beijing.
2 – Create subsidiaries.
Despite bans on China-based parent companies, firms such as Sugon have acquired tech from the likes of Nvidia through subsidiaries, while other companies access chips through Amazon and other foreign cloud services.
3 – Use fewer and older chips.
Companies such as DeepSeek have built advanced AI by stockpiling chips and by optimising software to make best use of them.