The Biden administration may close a loophole to deny Chinese companies from buying American-made AI chips through overseas subsidiaries, according to a new...
The Biden administration may close a loophole to deny Chinese companies from buying American-made AI chips through overseas subsidiaries, according to a new report.
Reuters reported Thursday night that U.S. rules restricting the export of AI chips and chip-making tools to China may be tightened later this month. Among the changes could be a tweak that would bar those types of sales to units of Chinese companies that are based outside of China, a loophole that had allowed Chinese companies to evade the restrictions, the report said.
A year ago, the Biden administration first imposed the restrictions on advanced semiconductors and chip-making equipment to China in an effort to prevent advanced U.S. technology from aiding China’s military. China has decried the rules as unfair and unwarranted. In August, President Joe Biden issued an executive order directing new restrictions on U.S. investment in advanced-tech companies in China, limiting how private-equity and venture-capital companies can invest there.
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