>We should not sell powerful chips or chipmaking equipment to China, and we should crack down on the rampant smuggling3 and workarounds used to obtain access to such chips. China has limited domestic production capacity, and therefore, due to the scaling laws, cannot build more powerful models than the US without US chips. This is the most efficient and direct way to block threat #1, and by hampering the training of models that are out of reach of US law, it also indirectly helps with threat #
We should crack down on industrial-scale distillation operations. Distillation is a much more compute-efficient process than training models from scratch. It allows China to build much better models than its number of chips would ordinarily enable, and thus partially evade chip bans. Distillation does not allow the CCP to obtain equivalent or superior AI capabilities to the US, but it can bring the Chinese frontier to within a few months of the US frontier
2.