US-China Tech War Spreads to Middle East as AI Sparks Export Restrictions on Advanced Chips – Cryptopolitan

The escalating US-China tech war between the United States and China has now reached the Middle East, with recent restrictions on the export of advanced computer chips. Nvidia, a leading US technology firm known for producing cutting-edge computer chips, revealed that the US government was limiting the export of its most advanced chips to unspecified Middle Eastern countries. While the exact countries affected remain undisclosed, this development underscores the growing importance of AI technology in global geopolitics and its implications for national security.

The battle for AI supremacy

The US has been striving to maintain its competitive edge over China in the realm of artificial intelligence (AI). To hinder China’s progress in AI development, a key strategy has been to control Chinese access to the computer chips and semiconductors crucial for advanced AI models. Nvidia, a world leader in chip manufacturing, has now found itself in the crosshairs of this technological tug-of-war.

Export restrictions on advanced chips

Last year, the US Department of Commerce initiated export restrictions on advanced chips to China and Russia. In August, these restrictions were expanded to include “some Middle Eastern countries.” The primary concern cited by the US government is that AI-enabling chips are “force multipliers for military modernization and human rights abuses.” This move is driven by fears that Chinese firms may exploit Middle Eastern nations as conduits to acquire advanced chips they cannot purchase directly, especially given China’s growing presence in the region.

Likely impacted Middle Eastern countries

While the affected Middle Eastern countries have not been officially identified, experts speculate that Iran, Saudi Arabia, and the United Arab Emirates (UAE) are under scrutiny. Iran’s proficiency in hacking, combined with the financial resources of Saudi Arabia and the UAE, make them plausible candidates. Qatar and Israel could also be implicated due to their substantial investments in AI and close ties to Chinese technology companies.

The Gulf States’ AI ambitions

The Gulf states, particularly Saudi Arabia, the UAE, and Qatar, have invested heavily in AI to diversify their economies away from oil dependence. Israel, too, is making significant strides in AI development, with several advanced chipmakers in the country.

Growing concerns over Chinese influence

Chinese technology companies like Huawei have expanded their presence in Middle Eastern markets, raising concerns about potential technology transfers and espionage. A Center for Emerging Technologies study revealed that many Chinese military chip purchases occur through intermediaries, including shell companies, suggesting a possible leakage of advanced technology.

Deepening ties between the Gulf and China

The Middle Eastern countries investing in AI have also strengthened their ties with China over the past decade. Saudi Arabia and the UAE have seen increased scientific cooperation with China, with Chinese students and researchers becoming integral to these collaborations. This connection raises questions about the security of advanced chips supplied to these nations.

Israel’s complex relationship

Israel has also deepened its ties with China, with Chinese tech giants like Huawei and Xiaomi establishing research centers. Chinese investors have funded Israeli chip-makers, which has helped Israel maintain a technological advantage. However, the export restrictions may impact Nvidia in Israel, as they apply to products made using US technology.

Political and human rights considerations

While human rights concerns play a role in these export restrictions, experts do not believe they primarily intend to exert political pressure on Middle Eastern countries. Instead, these controls signal the US’s commitment to tech competition with China and its determination to protect sensitive technology from falling into the wrong hands. The implications of these restrictions for relations between democracies and autocracies in emerging technology, particularly AI, remain subject to ongoing scrutiny.

The US-China tech war has now extended its battleground to the Middle East, as export restrictions on advanced computer chips have been imposed to safeguard national security interests and prevent technology transfer to China. As AI continues to shape the future of global innovation and geopolitics, the Middle East’s pivotal role in this evolving tech landscape is becoming increasingly apparent. The long-term impact of these restrictions on international relations and the race for AI supremacy remains a subject of keen observation.