The U.S. government has for many years tried to keep advanced computer chips out of the hands of Communist Chinese companies over concerns they could be used for military purposes. In response, reported the New York Times, some firms in Red China have
stockpiled thousands of chips, while others sourced them from a thriving underground marketplace of smugglers.
Indeed, the New York Times investigation found an active trade to Red China in restricted A.I. technology — part of a global effort by the Communist Chinese to circumvent U.S. restrictions as part of Red China’s all domain warfare against the United States.
These chips have enabled rapid advances in American defense technology, spurring U.S. fears that they could also help Red China develop superior weaponry, launch cyberattacks and make faster decisions on the battlefield. Nvidia chips and other U.S. technology are known to have aided Communist Chinese research into nuclear weapons, torpedoes and other military applications, according to a review of previously unreported university studies by the New York Times.
Starting in late 2022 the Biden administration put in place new rules to make it harder and more costly for Red China to develop A.I. But given the flaccid enforcement by the Biden administration and the vast profits at stake, businesses around the world have found ways to skirt the restrictions, according to interviews with more than 85 current and former U.S. officials, executives and industry analysts by the New York Times, as well as reviews of corporate records and visits to companies in Beijing, Kunshan and Shenzhen.
The vast profits available have incentivized treasonous American companies to find workarounds to keep selling restricted A.I. products to the Communists.
In one case, reported by the New York Times, Communist Chinese executives bypassed U.S. restrictions when they created a new company that is now one of Red China’s largest makers of A.I. servers and a partner of Nvidia, Intel and Microsoft.
Now, an announcement by a small Communist Chinese start-up called DeepSeek that it had a new A.I. system that could match the capabilities of cutting-edge chatbots from companies like OpenAI and Google using only a fraction of the highly specialized computer chips that leading A.I. companies relied on to train their systems has knocked about $560 billion of market cap off Nvidia, setting a new record for the largest single-day decline in market value for a company.
Biden’s feckless Secretary of Commerce, Gina Raimondo, told the New York Times it wasn’t surprising that Communist China, with its vast network around the world, was gaining access to some chips, but that she was working daily with law enforcement, the intelligence community and allies “to identify the holes and how China gets around them, and filling those holes.”
Raimondo is now gone, but the understaffed (and perhaps demoralized and under-motivated) Bureau of Industry and Security remains America’s frontline in one of the most important domains of Communist China’s all domain warfare against the United States.
DeepSeek’s announcement of its artificial intelligence breakthrough is not only a threat from the military perspective, Nvidia’s loss of $560 billion market cap is also a reminder that Communist China’s all domain warfare includes economic warfare that just made casualties of the 401ks, public pension funds, and investment accounts of millions of Americans.
We urge President Trump and his incoming team to add the need for a complete review and upgrade of the Bureau of Industry and Security to their growing list of national security matters neglected during the Biden years.
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