Export Controls Threaten the Future of AI Outposts in China

For some time, American companies including Microsoft, Google, and IBM have established research labs in China to tap into local AI talent and to keep track of technological trends. Now, as tensions and restrictions continue to ramp up, some observers wonder if the days of those outposts may be numbered. The US Commerce Department imposed new export controls on artificial intelligence software last week, a measure apparently designed to prevent US companies from shipping AI technology that could train Chinese military drones or teach intelligence systems to interpret aerial imagery. But it remains to be seen how broadly the rules are interpreted, and they are unlikely to be the last to land on American AI algorithms, datasets, and chips. The Commerce Department is, in fact, still weighing further AI software controls, and the Trump administration is increasingly scrutinizing how Silicon Valley interacts with China.