Reuters: US Embeds Secret Trackers in Chip Shipments to Enforce China Export Ban

By Staff, Agencies

US authorities are secretly placing tracking devices in shipments of high-risk semiconductors to detect and prosecute violations of Washington’s export restrictions to China, Reuters reported, citing anonymous sources.

The devices, sometimes hidden in packaging or even inside products such as servers, aim to target individuals and companies profiting from bypassing the curbs first imposed in 2022.

The US Commerce Department’s Bureau of Industry and Security is believed to lead the operations, with support from the FBI and Homeland Security Investigations.

Washington says the restrictions are driven by national security concerns, while Beijing denounces them as a “malicious blockade” and the “politicization” of technology and trade.

The revelations came just after President Donald Trump approved export licenses for Nvidia and AMD, allowing limited chip sales to China in exchange for a 15% share of related revenue.

Beijing has since warned domestic firms against using certain US chips for sensitive work due to espionage fears.

The latest measures unfold against a backdrop of easing trade tensions. On Monday, China and the US extended a 90-day tariff truce, maintaining lower duties following earlier spikes to 145% on Chinese goods and 125% on US exports.

A June framework agreement in London had already seen Washington relax some chip export controls in exchange for China easing restrictions on rare-earth minerals vital to microelectronics production.