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US moves to close loopholes in China’s chip sanctions

Shafaqna English– The U.S. Department of Commerce moved on Sunday(31 May 2026) to close a potential loophole that might have enabled the export of the world’s most advanced chips—including Nvidia’s most sophisticated Blackwell processors—to subsidiaries of Chinese companies based outside of China.

The surprising indication implies that America’s most advanced AI chips might have been reaching the subsidiaries of Chinese AI firms based in locations like Malaysia, even as the U.S. has been trying broadly to deprive Chinese companies of the semiconductors necessary for developing key AI capabilities.

SourceReuters

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