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The "Surveillance Empire" Debate: Understanding China's Accusations Against the US Over Chip Tracking


China has accused the US of being a "surveillance empire" due to its proposal to track high-value electronic shipments using asset tags. This controversy raises important questions about national security, technological sovereignty, and international relations. As both nations continue to scrutinize each other's actions in this area, it is crucial for policymakers to engage in open discussions about the implications of chip tracking and surveillance technologies.

  • The US has proposed using asset tracking tags to crack down on black-market GPU shipments to China.
  • China has accused the US of attempting to exert control over its technological landscape.
  • The use of such technology is part of a broader debate about ethics and implications of advanced technology exports.
  • The proposed system would require American chipmakers to implement location verification functionality for sensitive electronics like GPUs.
  • China has developed its own domestic semiconductor industry in response to US concerns over potential national security risks.
  • Policymakers and tech leaders need to engage in open discussions about the implications of chip tracking and surveillance technologies.



  • The recent remarks made by Chinese state media, labeling the US as a "surveillance empire" over its proposed use of asset tracking tags to crack down on black-market GPU shipments to the Middle Kingdom, have reignited an ongoing battle between two global rivals. This assertion has sparked a heated debate about the ethics and implications of advanced technology exports, with significant repercussions for both nations' economies and international relations.

    At the heart of this controversy lies a contentious issue regarding the tracking and monitoring of high-value electronic shipments, particularly GPU servers from leading manufacturers such as Nvidia and AMD. The proposed use of asset tags to track these sensitive electronics has been met with skepticism by Chinese officials, who have accused Washington of attempting to exert control over China's technological landscape.

    While it is true that the US has a long history of conducting extensive intelligence gathering operations, particularly in the realm of high-tech technologies, this does not necessarily justify China's assertion that the US is engaged in an overt "surveillance empire" agenda. Both nations have invested heavily in advanced surveillance capabilities, with China boasting one of the largest surveillance camera networks on the planet.

    The US export controls enacted over the past few presidential administrations have steadily reduced Chinese companies' access to America's most powerful chips and semiconductor manufacturing equipment necessary for building them. In response, several US lawmakers have proposed legislation that would require American chipmakers to implement location verification functionality to ensure sensitive electronics like GPUs do not find their way into countries of concern, primarily China.

    However, the details surrounding this proposal are still unclear, with many questions raised about how such a system could be implemented and whether it would truly prevent black-market GPU shipments from occurring. Reuters recently reported that US authorities have begun embedding location-tracking devices onto server shipments to assess their potential for being diverted to unauthorized destinations.

    While using asset tags to track high-value shipments may seem like an unusual tactic, it is essential to consider the broader implications of this technology in the context of international relations and technological sovereignty. The debate surrounding chip tracking has taken on a more nuanced tone as both nations have begun to scrutinize each other's actions in the area.

    The recent remarks made by Chinese officials regarding US efforts to embed security controls into AI chips are particularly noteworthy, given the country's own history of alleged backdoor installations in its equipment. In 2019, the US government launched a multi-billion-dollar rip-and-replace order for Huawei telecommunications equipment, citing concerns about potential national security risks.

    In response to these concerns, China has taken steps to develop its own domestic semiconductor industry, with leading companies such as Tencent and Alibaba investing heavily in AI research and development. This trend is likely to continue, as both nations seek to reduce their reliance on imports from the other party.

    As this complex issue continues to unfold, it remains crucial for policymakers and technology leaders to engage in open and honest discussions about the implications of chip tracking and surveillance technologies. While concerns about national security and technological sovereignty are valid, so too is the need to balance these considerations against the importance of international cooperation and trust-building.

    Ultimately, the "surveillance empire" debate serves as a poignant reminder of the challenges posed by advanced technologies in shaping global relations and the delicate balance between ensuring national security and respecting the sovereignty of other nations. As this critical issue continues to evolve, it is essential for stakeholders from both sides to engage in constructive dialogue, prioritizing mutual understanding and cooperation over rivalry and suspicion.



    Related Information:
  • https://www.ethicalhackingnews.com/articles/The-Surveillance-Empire-Debate-Understanding-Chinas-Accusations-Against-the-US-Over-Chip-Tracking-ehn.shtml

  • https://go.theregister.com/feed/www.theregister.com/2025/08/18/china_gpu_tracking/

  • https://www.msn.com/en-us/news/technology/pot-calls-kettle-black-as-china-dubs-us-surveillance-empire-over-chip-tracking/ar-AA1KKP7H

  • https://forums.theregister.com/forum/all/2025/08/18/china_gpu_tracking/


  • Published: Mon Aug 18 15:54:58 2025 by llama3.2 3B Q4_K_M













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