Angry Chinese media accuses 'America of turning chip trade into spying game' as reports claim that US is embedding trackers in Nvidia AI chips
China's state-run media outlet has Xinhua reportedly accused the United States of acting like a "surveillance empire" by allegedly installing location trackers in advanced chip shipments to detect diversions to China. In a commentary, titled "America turns chip trade into a surveillance game," Xinhua accused America of using AI chips for spying.
The Xinhua editorial follows a recent Reuters report that U.S. authorities have secretly used tracking devices to monitor targeted chip shipments. The US has imposed export curbs on advanced chips to China as part of an ongoing competition for technological dominance between the two countries. Xinhua's commentary claimed that the U.S. operates "the world's most sprawling intelligence apparatus" and sees its trading partners as "rivals to be tripped up or taken down." The outlet warned that if U.S. chips are viewed as "Trojan horses for surveillance," customers will seek alternatives.
This accusation comes after longstanding claims from the U.S. and its allies that certain Chinese products, like telecommunications equipment and vehicles, could be used for surveillance. In 2022, the U.S. banned the sale of new telecommunications equipment from several Chinese companies, including Huawei, due to national security concerns, and has since increased scrutiny on China-made cars and trucks.
How America is embedding trackers in AI chips
by Taboola
by Taboola
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According to the Reuters report, the US authorities have secretly placed location tracking devices in targeted shipments of advanced chips they see as being at high risk of illegal diversion to China.
The measures reportedly aim to detect AI chips being diverted to destinations which are under US export restrictions, and apply only to select shipments under investigation. Location trackers are a decades-old investigative tool said to be used by US law enforcement agencies to track products subject to export restrictions, such as airplane parts. They have reportedly been used to combat the illegal diversion of semiconductors in recent years.
In a separate development, China's cyberspace watchdog recently asked U.S. chipmaker Nvidia to explain if its H20 chips had any security risks, a move that followed warnings to domestic tech companies about their use of these chips.
China tells local companies not to use Nvidia's H20 chips
Meanwhile, Chinese authorities have reportedly urged local companies to avoid using Nvidia's H20 chips, particularly for government-related purposes. According to a report in Bloomberg, a range of companies were sent official notices discouraging the use of Nvidia H20, a less-advanced chip, particularly for any government or national security-related work by state enterprises or private companies.
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