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New US rules on AI chip exports aim to stop workarounds on China sales, says US official

  • The new rules will be added to US restrictions on shipments of advanced chips and chipmaking equipment to China unveiled last October
  • Last year US restrictions kept Nvidia, the world’s most valuable chip maker, from shipping two of its most advanced AI chips to Chinese customers

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A smartphone with a Nvidia logo. Nvidia is the world’s most valuable chipmaker. Photo: Reuters

The US will take steps to prevent American chip makers from selling products to China that circumvent government restrictions, a US official said, as part of the Biden administration’s coming actions to effectively block more AI chip exports.

The new rules, details of which Reuters is reporting for the first time, will be added to sweeping US restrictions on shipments of advanced chips and chipmaking equipment to China unveiled last October. The updates are expected this week, other people familiar with the matter said, though such timetables often slip.

The latest crackdown on tech exports to China coincides with US efforts to thaw difficult relations between the world’s two largest economies. Several senior members of the Biden administration have met their Chinese counterparts in recent months, and the latest round of rules risks complicating the diplomatic effort.

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Chips meant for consumer products such as laptops will be exempt from the new curbs, the official said.

A spokesperson for the US Department of Commerce, which oversees export controls, declined to comment.

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