US says ban on AI chip shipments applies to Chinese firms outside China | Technology News
U.S. Issues Guidance on Semiconductor Export Restrictions
The U.S. Department of Commerce has reaffirmed its restrictions on the export of semiconductors to subsidiaries of Chinese companies located outside China. This announcement aims to address concerns over potential loopholes in the country’s export control measures.
In guidance released on Sunday, the Department stated that licensing requirements for the export of advanced artificial intelligence (AI) chips apply to all businesses with headquarters or parent companies based in China.
The Bureau of Industry and Security (BIS), part of the Commerce Department, clarified these regulations following inquiries about enforcement compliance after the dismissal of the previous administration’s Framework for Artificial Intelligence Diffusion. The BIS confirmed that the existing licensing requirements remain in effect.
“This is a clear reaffirmation of our enforcement policies,” the BIS stated in its notice.
Originally introduced during the final days of the Biden administration, the framework sought to establish a comprehensive licensing system to manage access to AI chips, imposing export caps that would impact all but the closest U.S. allies. The proposal faced criticism from several tech companies, including Nvidia, which expressed concerns about its implications for innovation and international collaboration.
In May, the Trump administration rescinded the framework before it could be implemented, citing the burdensome regulatory requirements it would impose and the potential strain on diplomatic relations with other nations.
Nvidia, which has faced export restrictions on its latest Blackwell GPUs to China, indicated compliance with the clarified guidance. A spokesperson stated, “The guidance reaffirms that NVIDIA’s sales and vetting process is correct—consistent with our existing approach, licenses are required to ship controlled products to PRC headquartered companies.”
Major competitors AMD and Intel, as well as TSMC, which manufactures high-end chips for Nvidia, did not immediately respond to inquiries for comment. The BIS also declined to comment.
Chris McGuire, a former State Department official involved in technology policy during the Biden administration, criticized the Trump administration for creating loopholes that allowed Chinese companies access to export-controlled chips. He noted that shipments of such chips likely occurred at scale without clear enforcement guidelines.
“This clarification makes it clear that Blackwell shipments to China-headquartered companies outside of China are illegal again—this is an important step, though it remains to be seen how many shipments have already occurred,” McGuire commented via social media. He added that BIS’s statement acknowledges that prior recipients of these shipments are not required to cease usage.
The U.S. government has implemented extensive restrictions on high-end technology supplies to China amidst ongoing competition for leadership in AI. In December, Trump announced that he would permit Nvidia to sell its H200 chip to China, significantly relaxing prior export controls. While not the company’s most advanced silicon, the H200 is approximately six times more powerful than the previously allowed H20 chip.
