US closes loophole that allowed Chinese-owned subsidiaries located outside China to buy AI chips — report claims that hundreds of thousands of advanced AI chips have been acquired through BIS blind spot
The U.S. Bureau of Industry and Security has closed a loophole that allowed Chinese-owned subsidiaries outside of China to acquire advanced AI chips. Previously, firms in countries like Malaysia could legally purchase these chips, leading to hundreds of thousands of advanced AI chips potentially being diverted. This move aims to prevent China from accessing cutting-edge AI hardware through indirect channels. AI
IMPACT Restricts China's access to advanced AI chips, potentially slowing its domestic AI development and impacting global chip supply chains.