America wants to slam the door shut on computer chips reaching China through back channels. The Commerce Department plans to block artificial intelligence processors from sneaking into Chinese hands through Southeast Asian countries. Officials discovered that Chinese companies rent powerful graphics cards or buy them through Malaysia and Thailand after direct sales got banned. The government agency is drafting new rules to patch these sneaky workarounds that help Beijing access advanced technology.
Malaysia and Thailand could face strict new limits on receiving American-made AI chips. The proposed restrictions would allow these nations to import the valuable processors under one condition. Only American companies with home offices in the United States could operate the technology through their foreign branches. Commerce Secretary Howard Lutnick explained that allies can purchase AI chips if approved American operators run the data centers and cloud services.
Chinese tech giant Huawei has started making its Ascend processors to replace banned American chips. NVIDIA faces major uncertainty about future sales as the Trump administration shapes new technology policies. The graphics card maker has already lost huge amounts of business from Chinese customers. American officials worry that China will become less dependent on foreign technology through these homegrown alternatives. The global competition for AI dominance continues heating up as both nations fight for technological supremacy.
Malaysia and Thailand could face strict new limits on receiving American-made AI chips. The proposed restrictions would allow these nations to import the valuable processors under one condition. Only American companies with home offices in the United States could operate the technology through their foreign branches. Commerce Secretary Howard Lutnick explained that allies can purchase AI chips if approved American operators run the data centers and cloud services.
Chinese tech giant Huawei has started making its Ascend processors to replace banned American chips. NVIDIA faces major uncertainty about future sales as the Trump administration shapes new technology policies. The graphics card maker has already lost huge amounts of business from Chinese customers. American officials worry that China will become less dependent on foreign technology through these homegrown alternatives. The global competition for AI dominance continues heating up as both nations fight for technological supremacy.
