This is from the Wall Street Journal this past weekend.
A Wall Street Journal review of procurement documents found that the state-run China Academy of Engineering Physics has managed to obtain the semiconductors made by U.S. companies such as Intel Corp. and Nvidia Corp. since 2020 despite its placement on a U.S. export blacklist in 1997.
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Such purchases defy longstanding restrictions imposed by the U.S. that aim to prevent the use of any U.S. products for atomic-weapons research by foreign powers. The academy, known as CAEP, was one of the first Chinese institutions put on the U.S. blacklist, known as the entity list, because of its nuclear work.
A Journal review of research papers published by CAEP found that at least 34 over the past decade referenced using American semiconductors in the research. They were used in a range of ways, including analyzing data and generating algorithms. Nuclear experts said that in at least seven of them, the research can have applications to maintaining nuclear stockpiles. CAEP didn’t respond to requests for comment.
The findings underline the challenge facing the Biden administration as it seeks to more aggressively counter the use of American technology by China’s military. In October, the U.S. expanded the scope of export regulations to prevent China from obtaining the most advanced American chips and chip-manufacturing tools that power artificial intelligence and supercomputers, which are increasingly important to modern warfare.
Most of the chips procured by the academy ranged in size from 7 nanometers to 14 nanometers, many of which are difficult for China to mass produce. They are widely available on the open market: Versions of Intel’s Xeon Gold and Nvidia’s GeForce RTX chips purchased by CAEP can be bought off Taobao, one of China’s largest e-commerce marketplaces. The purchases didn’t include the latest generation of chips launched within the last two years.
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China has been accelerating the expansion of its nuclear force and delivery capabilities in recent years, the Department of Defense said in an annual report to Congress released in November. The People’s Liberation Army could stockpile about 1,500 nuclear warheads by 2035 if it continues at its current pace, up from more than 400 now, the department estimated.
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