 "America opened its doors to 20 countries, India’s name is not in the list! Why such stepfather treatment?")
The US has made some changes in the rules regarding the export of advanced chips used for artificial intelligence (AI). It has been decided that no chips will be exported to China and Russia. However, there will be no restrictions on exports of chips to 20 countries. This decision will definitely create problems for China as it imports a large number of chips. What worries us is that India’s name is not included in the list of 20 countries to which the US has kept chip exports open.
After all, how can America treat India like a stepmother? This question becomes even more important when America calls India its important partner. This decision has been taken a week before Joe Biden leaves the office of the President. The US has been taking a tough stance towards China regarding its internal security. In this regard, the export of chips has also been stopped.
Let us tell you that America has exempted Australia, Italy, Belgium, Britain, Canada, Denmark, Finland, France, Germany, Ireland, Japan, Netherlands, New Zealand, Norway, South Korea, Spain, Sweden, Taiwan from the new restrictions. India does not feature in this list.
Even before this, some similar decisions have been taken by America regarding India. A few months ago, the US had imposed a ban on Indian companies. On October 30, the US imposed sanctions on nearly 400 companies and individuals, including 19 Indian companies and two Indian nationals, for allegedly helping Russia’s war effort in Ukraine.
Why not India’s name?
When the war between Russia and Ukraine started, America and European countries together boycotted Russia. Various trade sanctions were imposed on Russia. Russia is one of the largest oil producing countries. After sanctions, Russia started selling oil to India. The oil that India used to get from Russia was cheaper than other countries. All the European countries, including the US, who wanted to destroy Russia’s economy, could not tolerate that India should buy oil from Russia.
Despite warnings from several European countries, India continued to buy oil from the US. In such a case, it can be suspected that the US kept India out of the list because it is close to Russia. Nothing has been said officially.
India can benefit
India has recently emphasized AI and semiconductor manufacturing. India and the US have a very good strategic partnership at the trade level. In such a situation, India can benefit. The US sanctions do not name supplies and gaming chips to India, but they do ban the export of AI chips to countries like China and Russia. This policy could potentially divert investment and resources to countries like India.
America took this decision in its own interest.
“Managing national security risks requires agreements,” U.S. Commerce Secretary Gina Raimondo wrote in a White House blog post. This regulation ensures that our partners have access to cutting-edge technology while protecting our interests.”
It’s worth noting that these regulations are based on previous chip export controls, which aimed to ensure that AI development conforms to US standards. “This rule ensures that the infrastructure for advanced AI systems remains in the United States or its territories,” US National Security Adviser Jake Sullivan said in an official statement.
Did America make a mistake?
Nvidia has strongly opposed the new rules. Nvidia, a leader in AI chip manufacturing, warned that the policy risks undermining America’s global technology dominance. “These regulations could derail innovation and economic growth around the world,” said Ned Finkel, Nvidia’s vice president of government affairs. The company highlighted the potential unintended consequences of these restrictions, including driving customers to Chinese competitors such as Huawei, which has made significant advances in AI chips. This means that if other countries do not get chips from the US, they can turn to Chinese giant Huawei, which will directly benefit China.