Beijing hits back at Anthropic CEO’s call to curb China's AI development

China’s Ministry of Foreign Affairs has hit back at a call from the head of Anthropic for the U.S. to curb China’s artificial intelligence

Anthropic CEO Dario Amodei testified before the Senate Commerce Committee on July 10 2024, urging the United States to block exports of Nvidia H100 AI chips to China to slow Beijing’s AI progress. He cited that Chinese AI firms accounted for roughly 35 percent of global demand for advanced semiconductors in 2023. China’s Ministry of Foreign Affairs responded on September 30 2024 through spokesperson Mao Ning, calling the remarks baseless and inconsistent with World Trade Organization rules. Anthropic’s latest funding round in 2023 raised $580 million, valuing the company at $4.1 billion.

Should the US restrict H100 chip shipments, data‑center operators may face higher hardware costs, which they often pass on to customers of AI‑powered apps. A recent industry analysis estimates that a 10 percent rise in chip prices could translate to a 12 percent increase in subscription fees for services such as real‑time translation and image‑enhancement tools. Consumers who rely on these features for daily communication might see their monthly bills go up accordingly. The effect would be most noticeable in premium tiers that rely on the latest generative models.

Washington’s push to limit China’s access to cutting‑edge semiconductors follows a pattern that began with the 2020 entity list placing Huawei under strict export bans. The CHIPS and Science Act of 2022 earmarked $52 billion to boost domestic chip production, indirectly pressuring foreign suppliers to curb sales to Beijing. In response, China has accelerated its own semiconductor agenda, pledging over $150 billion in state funding for fabs and design houses by 2025. Analysts note that each round of restrictions has prompted faster domestic innovation, narrowing the performance gap between US and Chinese AI hardware.

The House Foreign Affairs Committee is scheduled to vote on October 15 2024 on a bill that would expand current licensing requirements for AI chips destined for China. If passed, the Bureau of Industry and Security could begin reviewing new export license applications as early as November 1 2024, potentially delaying shipments of H100 and B200 processors. Industry sources say that even under tighter controls, Chinese AI companies have raised their domestic chip output by an estimated 30 percent this year, reducing reliance on foreign silicon. This shift suggests that the latest round of restrictions may accelerate China’s self‑sufficiency faster than policymakers anticipated.