The trade war between the two largest economies in the world has been going on for nearly a decade. This bloodless war has involved almost all of the world and the economies in the world. The trade war, which, according to many, was started by the Trump administration, has been continued by his successor, the incumbent US President Joseph Biden.

Microsoft Google Contravene US

Biden has brought about many rules and diktats over the past few years that have acted as a buffer between Chinese tech companies and advanced, cutting-edge technology.

Recently, in tune with this aggressive policy, the administration issued restrictions on the transfer or sale of advanced technology and extended the business of American firms with Chinese companies.

This, however, appears to have not deterred the American giants from working with the Dragon. In a recent development, as per reports, against the US government’s wishes, the likes of Microsoft and Google have been providing Chinese companies with state-of-the-art Nvidia chips.

It is to be noted that these chips have been at the forefront of the AI revolution that has gripped the world of business and the globe at large.

According to reports, Alphabet-owned Google and Microsoft’s cloud divisions are said to be providing Chinese companies access to Nvidia’s AI chips.

And for this, the companies are offering these chips from data centres outside mainland China in order to override the restrictions imposed by the Biden Administration.

According to these reports, Satya Nadella-run Microsoft is availing server rental services, including those with Nvidia’s A100 and H100 chips.

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FDPR To Curb China

According to these reports, Satya Nadella-run Microsoft is availing server rental services, including those with Nvidia’s A100 and H100 chips.

These reports come to light at a time when the US government does not appear to be backing down on its policies against China. The Biden administration recently brought in the Foreign Direct Product Rule (FDPR).

The FDPR has been deemed an export control measure to curb any exchange. This, according to reports, is a way for the US to prevent China from obtaining advanced chipmaking equipment.

This development led to major tech stocks crumbling, tracking the tech-heavy Nasdaq on July 17.