China’s state-run media outlet Xinhua on Friday criticised the United States for embedding location trackers in sensitive chip shipments, calling the move a reflection of the “instincts of a surveillance empire”.
Reuters reported earlier this week that US authorities had secretly placed location tracking devices in targeted shipments of advanced chips to detect diversions to China, which is under US curbs for advanced chip exports.
Surveillance Game
The Xinhua commentary, titled “America turns chip trade into a surveillance game,” cited “reports” that Washington had embedded such trackers, accusing the United States of running “the world’s most sprawling intelligence apparatus”.
The US government has in the past few years tightened restrictions on the exports of advanced chips as well as related technology and equipments to China, as the two superpowers vie for technological dominance.
The Chinese commentary comes in response to long-standing accusations from Washington and its Western allies that Beijing could exploit exported products — ranging from telecommunications gear to electric vehicles — for surveillance purposes, posing serious national security risks.
Trojan Horses
In 2022, the Biden administration banned the sale and import of new telecommunications equipment from several Chinese firms, including Huawei, citing national security concerns. In January, it intensified scrutiny by targeting China-made cars and trucks.
In its commentary, Xinhua accused the US government of seeing its trading partners as “rivals to be tripped up or taken down,” adding that “if US chips are seen as Trojan horses for surveillance, customers will look elsewhere”.
Nvidia H20 Chips
China’s cyberspace watchdog last month said it had asked US chipmaker Nvidia to explain whether its H20 chips had any backdoor security risks – a hidden method of bypassing normal authentication or security controls.
Chinese authorities have also cautioned domestic tech firms over their use of H20 chips, Reuters recently reported.
(With inputs from Reuters)
