Jakarta, ThedailyID — The United States has closed a loophole that reportedly allowed advanced AI chips to reach Chinese-linked companies overseas.
The policy targets some of the world’s most powerful processors. They include Nvidia’s Blackwell and Rubin chips, along with AMD’s MI350X series.
According to Reuters, the U.S. Department of Commerce issued new guidance over the weekend. The rules require export licenses for advanced chips shipped to Chinese entities, even if they operate outside China.
The move expands Washington’s efforts to restrict China’s access to cutting-edge semiconductor technology.
Industry sources estimate that hundreds of thousands of advanced chips may have passed through the loophole before regulators acted.
The gap emerged after U.S. authorities decided not to enforce the AI Diffusion Rule in May 2025. The regulation was introduced during the final days of former President Joe Biden‘s administration.
Technology analyst and former U.S. State Department official Chris McGuire described the loophole as a major problem.
According to McGuire, overseas subsidiaries of Chinese companies could buy advanced chips without obtaining licenses. He said some firms likely purchased the technology in large quantities.
Neither Nvidia nor AMD immediately commented on the new policy.
The restrictions will not apply retroactively. Companies that already purchased the chips can continue using them in existing data centers.
The latest measure highlights the growing technology rivalry between the United States and China. Both countries continue competing for leadership in artificial intelligence and semiconductor development.
