The American company Nvidia has started offering China an alternative to exporting chips that have been sanctioned by the Washington government, The Wall Street Journal reports.

Nvidia says the new graphics chip, called the A800, complies with restrictions imposed by the Biden administration on the types of chips that can be exported to China.

The company also said it began manufacturing the chip last month as it faced the risk of losing hundreds of millions of dollars in revenue from the Chinese market after the Democratic administration in Washington last month unveiled a new package of sanctions on exports to Beijing.

The production and export of semiconductors is the subject of a fierce struggle between the two economic powers for technological dominance. The US regularly accuses China of industrial espionage and threats to its national security.

This conflict has taken on a new dimension since the onset of the global semiconductor crisis due to the COVID-19 pandemic, which has led to the closure of some of the largest factories producing such equipment.

Nvidia wants to bypass US sanctions

“These updates will limit the ability of the People’s Republic of China to simultaneously purchase and manufacture certain high-end chips used for military purposes,” the US Department of Commerce’s Bureau of Industry and Security (BIS) said on Oct. 8 of the new sanctions. .

“Our actions will protect US national security and foreign policy interests by sending a clear message that American technology leadership is a matter of values ​​as well as innovation,” said Commerce Under Secretary for Export Affairs Thea Roseman Candler. .

About a quarter of Nvidia’s $26.9 billion in revenue last fiscal year came from China.

In August, the US company estimated that restrictions on the export of A100 chips would cost it $400 million annually in lost sales.