00:00The U.S. has tightened export controls on advanced artificial intelligence chips
00:05as it seeks to prevent Chinese firms from accessing cutting-edge technology through overseas subsidiaries.
00:11New guidance from the U.S. Department of Commerce warns that potential loopholes
00:15may still allow the export of high-end processors,
00:18including NVIDIA's Blackwell chips, to foreign-based subsidiaries of Chinese companies.
00:24The guidance suggested that some advanced U.S. AI chips may have reached Chinese-linked entities in countries such as
00:31Malaysia.
00:32Those exports may have occurred despite broader U.S. efforts to limit China's access to the semiconductors needed for advanced
00:40AI development.
00:41In its latest guidance, the Bureau of Industry and Security said
00:45it would enforce licensing requirements on Chinese headquartered companies operating outside China.
00:51The loophole emerged after the Commerce Department announced in May 2025
00:56that it would not enforce the AI diffusion rule.
00:59The rule was introduced during the final days of the Biden administration
01:03and established licensing requirements for global access to advanced AI chips.
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