The United States reportedly will tighten its export controls on chips and semiconductors to restrict China's ability to circumvent trade restrictions through partner nations.
The Biden administration intends to implement new rules that will expand sweeping U.S. restrictions on the shipments of advanced chips and chipmaking tools, according to Reuters and Bloomberg. The new rules will block specific chips used to power artificial intelligence from being sold to China while demanding others' sale to be reported to the Department of Commerce, according to officials.
The new restrictions could affect specific chips created to serve the Chinese market. When the Biden administration announced the export curbs in October, companies like Nvidia tried to accommodate the demands by creating separate products to fit within U.S. export restrictions while serving the needs of China. If the new rules are passed, they will expand the category of affected chips to include several of these products, officials said.
Biden's efforts have pressured the Chinese economy and forced Beijing to step up and provide more than $40 billion in government subsidies to Chinese chipmakers to help them figure out how to catch up with the U.S. in chip development.