Although the U.S. government has imposed extensive restrictions against the Chinese high-tech industry in a bid to prevent the latter from obtaining advanced chips and wafer fab equipment (WFE) made by American companies, Chinese entities can still get what they need using various loopholes, a report from the U.S.-China Economic and Security Review Commission has revealed. SMIC’s high-volume production of 7nm chips illustrates that Chinese companies can definitely overcome U.S. sanctions.

The measures imposed by the U.S. administration in Oct. 2023 have notably impacted China’s artificial intelligence, high-performance computing, and semiconductor sectors, in general — but loopholes and China’s adaptive strategies have undermined their overall effectiveness, reports The Register.