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<\/a><\/p>\nPublished On 1 Jun 20261 Jun 2026<\/p>\n
The United States has issued a notice affirming its restrictions on shipments of semiconductors to subsidiaries of Chinese companies located outside China amid concerns about loopholes in Washington\u2019s export control regime.<\/p>\n
The Department of Commerce said in the guidance issued on Sunday that its licensing requirements for the export of advanced AI chips applied to all businesses with headquarters or a parent company in China.<\/p>\n
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The Bureau of Industry and Security (BIS), which falls under the Commerce Department, said it issued the clarification in response to questions about whether it was enforcing preexisting licence requirements after it overturned former President Joe Biden\u2019s Framework for Artificial Intelligence Diffusion.<\/p>\n
\u201cThe answer is yes,\u201d the BIS said in the notice.<\/p>\n
Unveiled in the final days of the Biden administration, the framework proposed the implementation of a globe-spanning licensing regime to control access to AI chips, including export caps for all but the closest US allies.<\/p>\n
The framework drew backlash from tech firms, including Nvidia, the world\u2019s most valuable chip company, which cast the proposal as a threat to innovation and cross-border collaboration.<\/p>\n
President Donald Trump\u2019s administration scrapped the framework last May, ahead of its implementation, citing the \u201cburdensome new regulatory requirements\u201d and the harm it would do to Washington\u2019s diplomatic relations with other countries.<\/p>\n
Chip giant Nvidia, whose top-of-the-line Blackwell GPUs are banned for export to China, said it had already been operating in keeping with the clarified rules.<\/p>\n
\u201cThe guidance reaffirms that NVIDIA\u2019s sales and vetting process is correct \u2013 consistent with our existing approach, licences are required to ship controlled products to PRC headquartered companies,\u201d a Nvidia spokesperson told Al Jazeera, using the acronym for the People\u2019s Republic of China.<\/p>\n
AMD and Intel, Nvidia\u2019s main competitors in the GPU space, and TSMC, which manufactures the most advanced chips on behalf of clients including Nvidia, did not immediately respond to requests for comment.<\/p>\n
The BIS\u00a0also\u00a0did not\u00a0respond to\u00a0inquiries.<\/p>\n
Chris McGuire, a former State Department official who worked on technology policy in the Biden administration, accused the Trump administration of providing Chinese companies a loophole to buy export-controlled chips.<\/p>\n
\u201cChinese companies have been buying these chips,\u00a0very likely\u00a0at scale. And because BIS has not updated export control regulations to clearly\u00a0state\u00a0what it IS enforcing, all of this was legal,\u201d McGuire said in a post on X.<\/p>\n
\u201cThis clarification does make clear that Blackwell shipments to China-headquartered companies outside of China are now illegal again\u00a0\u2013\u00a0which is good, although obviously we\u00a0have to see how many shipments have already gone to assess how much damage was done,\u201d\u00a0McGuire said.<\/p>\n
\u201cBIS\u2019 statement acknowledges these shipments have been happening when it says companies who bought chips under this loophole don\u2019t have to stop using them.\u201d<\/p>\n
The US has rolled out numerous restrictions on the supply of high-end technology to China, as Washington and Beijing battle for dominance in AI.<\/p>\n
In December, Trump announced that he would allow Nvidia to sell its H200 chip to China, in a major loosening of Washington\u2019s export controls.<\/p>\n
While not Nvidia\u2019s most advanced chip, the H200 is about six times as powerful as the H20, the most advanced chip previously allowed for export to China.<\/p>\n","protected":false},"excerpt":{"rendered":"Department of Commerce issues guidance on chip restrictions amid concerns about loopholes in export control regime. Published On…\n","protected":false},"author":2,"featured_media":476950,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[220,218,219,1954,113,61,1955,60,43,80,115,2739],"class_list":["post-476949","post","type-post","status-publish","format-standard","has-post-thumbnail","category-artificial-intelligence","tag-ai","tag-artificial-intelligence","tag-artificialintelligence","tag-business-and-economy","tag-economy","tag-ie","tag-international-trade","tag-ireland","tag-news","tag-technology","tag-united-states","tag-us-canada"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/476949","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/comments?post=476949"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/476949\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media\/476950"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media?parent=476949"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/categories?post=476949"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/tags?post=476949"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}