Singapore’s Ministry of Trade and Industry (MTI) has reaffirmed expectations that US companies, particularly Nvidia, will comply with both US export controls and local laws. This comes in light of recent investigations into whether Chinese start-up DeepSeek illegally procured advanced Nvidia chips through intermediaries in Singapore.
MTI’s Position on Compliance
On 1 February 2024, the MTI addressed reports that DeepSeek, known for its groundbreaking AI model, might have circumvented US regulations to acquire these sophisticated chips. The ministry stated, “We expect US companies, like Nvidia, to comply with US export controls and our domestic legislation.” They went on to emphasise that Singapore’s customs and law enforcement agencies are committed to collaborating with US counterparts.
Scepticism Surrounding Export Activity
- Nvidia reported that about 22% of its revenue in the third quarter was from Singapore, prompting further scrutiny.
- A company spokesperson clarified that revenue linked to Singapore does not imply diversion to China, stating that a majority of these transactions are for products intended for the US and Western markets.
Global Business Hub
In its statement, MTI explained that Singapore serves as a vital international business hub where many US and European companies maintain significant operations. This context helps clarify why there are legal and compliant channels for business entities acquiring advanced technology.
Nvidia has insisted that it maintains stringent oversight of all shipments and has not found evidence to suggest that DeepSeek obtained export-controlled products from Singapore.
Continued Vigilance
The scrutiny surrounding this situation has led to calls from US lawmakers for stricter licensing requirements for countries perceived as facilitating such actions. Singapore’s government remains steadfast in its position of upholding the rule of law, with MTI noting, “We have always upheld the rule of law and acted decisively against individuals and companies that flout the rules.” This reassures both local and international stakeholders of Singapore’s commitment to sound business practices.