US authorities embed tracking devices in chips shipments to China
(MENAFN) US officials have reportedly been discreetly placing tracking devices in shipments of computer chips considered highly likely to end up in China in breach of Washington’s export restrictions, according to reports.
Washington first began restricting the sale of advanced chips to China in 2022, citing national security risks. Beijing has condemned the move as a “malicious blockade” and accused the US of “politicization and weaponization of tech and trade issues.”
The covert tracking effort is said to be part of a strategy to collect evidence against individuals and companies that profit from sidestepping the ban. Reports indicate that some of the devices are concealed in packaging, while smaller models may be embedded directly into products such as servers.
Operations of this kind often involve the US Commerce Department’s Bureau of Industry and Security, with possible cooperation from the FBI and Homeland Security Investigations, according to sources familiar with the matter.
Following a trade agreement with Beijing on Monday, President Donald Trump authorized export licenses for Nvidia and AMD, permitting them to resume shipments of certain chips to China. This includes Nvidia’s H20 graphics processing unit and AMD’s MI308 chip, though the sales are contingent on the companies giving the US government 15% of the revenue generated from these exports.
Despite this development, Beijing has reportedly advised domestic firms against using the H20 in sensitive governmental or national security projects, citing fears of potential data leaks.
Meanwhile, both nations agreed to extend their tariff truce for another 90 days, preventing the reinstatement of heavy duties on each other’s goods.
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