Biden sets a trap for Trump

U.S. President Joe Biden is also like before leaving office to make some things, his administration plans to leave office a few days before $NVIDIA(NVDA)$ $Advanced Micro Devices(AMD)$ $Broadcom(AVGO)$ $Intel(INTC)$ and other companies of AI chip exportsImplement a new round of restrictions, including China, Russia and other targets.

The U.S. wants to curb the sale of artificial intelligence chips for data centers at the national and corporate levels, people familiar with the matter said, with the aim of focusing AI development in so-called "friendly countries" and aligning global companies with U.S. standards.

The rules, which could be released as soon as Friday, would establish three tiers of chip trade restrictions:

That said, the addition of Tier 2 countries may also have an impact on some of the "bypass" export routes.

However, most Tier 2 countries lack competitiveness in AI research.

Israel is Tier 1 in the graph, but Switzerland is classified as Tier 2.

This approach is a bit of a signaling exercise:

  1. Showing that the Democrats-led administration (Biden) is focused on alliances and is willing to openly engage in cliquishness and standoffishness(but Trump Not);

  2. Dig a hole for the Trump administration on how to enforce and engage with Tier 1 and Tier 2 countries;

  3. By the way, escalate chip export restrictions on Tier 3 countries (mainly China and Russia) again.

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