Headline, September 3 2024/ ''' SUPER COMPUTER SURLY '''

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THE UNITED STATES LEADS CHINA IN ARTIFICIAL INTELLIGENCE for now, but China is making rapid progress as both countries race to create A.I. that would rival human intelligence.

'' NEW - BUT NOT NEW " : NEAR THE WHITE HOUSE, is an office with worn carpet and antiquated computer systems, the little-known Bureau of Industry and Security oversees the government's growing trade restrictions intended to limit the flow of U.S. technology.

One of the bureau's chief tools is the so-called entity-list, created under the Clinton administration to prevent adversaries from developing weapons of mass destruction. A company cannot export products from the United States to a business on the list unless it obtains a license.

U.S, officials say American companies generally try to comply with the rules. But some have found loopholes, for instance by rerouting business through the partnerships or overseas subsidiaries.

The bureau has tried to adapt, toughening its penalties and creating a so called Disruptive Technology Strike Force with law enforcement agencies and the intelligence community to pursue technology theft and illegal procurement networks.

Ms. Raimondo, the commerce secretary, who oversees the bureau, said that she was proud of her team's work but that its resources were limited. The bureau has a budget of $191 million, less than the cost of two fighter jets.

NETRIX, one of China's largest manufacturers of A.I. servers, is one example of how business can thrive despite American restrictions.

At its first product introduction in April 2020, a Netrix executive described one of the startup's advantages. '' In this company we talk about 'new, but not new, ' '' he said, clarifying that its employees were industry veterans.

In fact, Nettrix was an offshoot of Sugon, a firm that provided advanced computing to the Chinese military and built a system the government used to surveil. In December 2019, six months after the United States put Sugon on the entity list, a group of former executives formed Netrix.

A SUPERCOMPUTING CENTER : Six months into the Biden administration, China tested a weapon that shook U.S. officials : a hypersonic missile that circled the earth.

The weapon, which surpassed American technology, could theoretically dodge missile defense systems to deliver a nuclear warhead to the United States, according to a half-dozen current and former national security officials.

Much is still unclear about the technology, but several officials said that U.S. chips had helped accelerate China's missile program.

White House officials had already been developing broader restrictions to selling chip-making equipment to China. They later learned more about the role of U.S. chip technology in Chinese cyberoperations, cryptography, and disinformation and research valuable to the military.

In southern China, for example, Nvidia's restricted A100 chips began powering a high-performance computing cluster at Sim Yat-sen University in Guangzhou in November 2022. Researchers there used advanced computing to model missiles and torpedoes, according to papers and university news releases.

In China's northeast, a supercomputing center set up one of the world's fastest A.I. and computing platforms in 2019.

The center uses chips from Nvidia, Advanced Micro Devices and Intel, according to its website, and can analyze satellite imagery of China's island-building program in the South China Sea and the radar signatures of stealth fighters.

And in central China, a university affiliated with the Chinese Academy of Sciences was using Nvidia, A.M.D. and Intel chips to study nuclear weapons, according to university materials. This May, the United States added the university to the entity list.

Mr. Rizzo said that Nvidia's products were ''designed, marketed and sold for beneficial nonmilitary uses. We do not permit our products to be used for prohibited military purposes,'' Intel said it complied with trade law.

A.M.D. declined to comment.

The Honour and Serving of the Latest GlobalOperational Research on A.I., Technology, Benefits, and the World continues. The World Students Society thanks authors Ana Swanson, reporting from Shenzhen, China; Beijing; and Washington.

Claire Fu reported from Seoul. Keith Bradsher contributed reporting from Kunshan, Chia, Kitty Bennett contributed research.

With respectful dedication to the Leaders, Policy Makers, Students, Professors and Teachers of the world.

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