The news continues to misrepresent export control regulations as some sort of ban. As I explained in my previous post, the restrictions are merely to secure mega profits for a select few licensed exporters while kicking out their competitors. In particular, preferentially giving license to American corporations at the expense of American allies.
The “loopholes” in the restrictions are also never explained. We’re just supposed to take it face value that “cHiNa iS BreAkInG tHe RuLeZ!!1”. From my reading of the US Dept of Commerce’s official Export Administration Regulations, the only “loophole” is that exporters can apply for a license and then they can export. The continuous portrayal of China as a bad faith trade partner is a propaganda tactic to cover up their own bad faith profit driven dealings—wanting to profit from trade with China while directing the American public’s anger at China for the hollowing out of the American chip industry.
The decline of imports is subtly portrayed as a win for the cover narrative that the sanctions are presumably to slow down or stop altogether China’s access to chips. In reality, this is probably due to China building up domestic chip manufacturing—I’ll credit the article for mentioning that revenue from domestic manufacturers rose 39% in the first half of 2023 compared to a year earlier. By presenting it this way, they confuse readers into thinking that this loss (the decline of exports to China) is actually a win.
I guess what I’m about to say might sound strange then, but billionaires can and often do lie to the public. Any real loss of revenue would be caused by China ramping up domestic production. I doubt Nvidia would have a hard time getting an export license.
Nvidia is exactly the least likely to get an export license because their GPUs are the best for AI. The sanctions are mainly targeting Nvidia because their GPUs are seen as useful for military applications of AI.