US moves to block Nvidia and AMD AI chip shipments to Chinese firms operating overseas
The US Department of Commerce has tightened export rules to block advanced AI chips from Nvidia and AMD, including Blackwell and Rubin processors, from reaching Chinese firms operating overseas through subsidiaries in countries like Malaysia. The move aims to close a loophole that allowed hundreds of thousands of restricted chips to bypass licensing requirements since May 2025, addressing concerns over China’s access to critical AI technology for both commercial and military use." "article": "The United States has strengthened export controls to prevent Chinese companies from acquiring advanced AI chips through overseas subsidiaries. New guidance from the US Department of Commerce enforces licensing requirements on high-performance chips, such as Nvidia’s Blackwell and Rubin processors and AMD’s MI350X accelerators, even if the entities purchasing them are located outside mainland China. The policy change targets Chinese firms operating in countries like Malaysia, where they may have bypassed US restrictions by procuring cutting-edge processors through subsidiaries. The move follows reports that hundreds of thousands of advanced chips could have reached Chinese-linked entities since May 2025, when the Trump administration paused enforcement of the AI Diffusion Rule introduced under the Biden administration. The restrictions apply to chips critical for training and deploying advanced AI models, which are considered strategically important for both commercial and military applications. However, the guidance does not require data centers to remove already deployed chips or mandate service providers to halt maintenance for existing systems. Technology policy experts have described the loophole as a major vulnerability in US export controls, allowing overseas subsidiaries of Chinese companies to acquire advanced chips like Nvidia’s Blackwell without proper licensing. The latest action reflects Washington’s broader effort to maintain its lead in AI and limit China’s access to cutting-edge semiconductor technology.
The United States has strengthened export controls to prevent Chinese companies from acquiring advanced AI chips through overseas subsidiaries. New guidance from the US Department of Commerce enforces licensing requirements on high-performance chips, such as Nvidia’s Blackwell and Rubin processors and AMD’s MI350X accelerators, even if the entities purchasing them are located outside mainland China. The policy change targets Chinese firms operating in countries like Malaysia, where they may have bypassed US restrictions by procuring cutting-edge processors through subsidiaries. The move follows reports that hundreds of thousands of advanced chips could have reached Chinese-linked entities since May 2025, when the Trump administration paused enforcement of the AI Diffusion Rule introduced under the Biden administration. The restrictions apply to chips critical for training and deploying advanced AI models, which are considered strategically important for both commercial and military applications. However, the guidance does not require data centers to remove already deployed chips or mandate service providers to halt maintenance for existing systems. Technology policy experts have described the loophole as a major vulnerability in US export controls, allowing overseas subsidiaries of Chinese companies to acquire advanced chips like Nvidia’s Blackwell without proper licensing. The latest action reflects Washington’s broader effort to maintain its lead in AI and limit China’s access to cutting-edge semiconductor technology.
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