The Commerce Department’s new guidance, published on its website, indicates that subsidiaries of Chinese AI firms in countries such as Malaysia have been receiving these advanced chips for almost a year.

What Does The Guidance Say? The Commerce Department’s new guidance, published on its website, indicates that subsidiaries of Chinese AI firms in countries such as Malaysia have been receiving these advanced chips for almost a year. This development comes despite ongoing U.S. measures to limit China’s access to semiconductors vital for AI advancements. The department now intends to impose license requirements for advanced chips on entities headquartered in China, regardless of their location. The loophole emerged when the Commerce Department opted not to enforce the AI Diffusion rule in May 2025, a decision made during the final days of the Biden administration. Expert Explains Significance Of New Guidance Council on Foreign Relations' Senior Fellow for China, Chris McGuire, pointed out in a post on X that this oversight enabled Chinese companies to acquire Nvidia Blackwell chips without a license. However, the new guidance does not mandate data centers to cease using these chips or servicing related computing equipment. "This clarification does make clear that Blackwell shipments to China-headquartered companies outside of China are now illegal again—which is good, although obviously we have to see how many shipments have already gone to assess how much damage was done," he said. Huang Emphasizes China's Significance As A Market The U.S. government’s decision to close this loophole is part of a broader strategy to curb China’s access to advanced technology. Nvidia CEO Jensen Huang recently emphasized China’s significance as a market, underscoring the complex dynamics at play. Despite export controls, Nvidia’s operations in China have remained substantial, with reports suggesting that over 20% of its fiscal year 2026 compute revenue was still derived from China through intermediaries. Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Photo courtesy: Shutterstock

Physicists at the University of Oxford show they can assemble Schrödinger’s cat-like superpositions from far more exotic quantum ingredients.

Selection marks the next phase of construction on Micron’s New York project, expected to generate 50,000 jobs.

OneAdvanced has launched what it bills as the UK’s first private, sovereign healthcare large language model trained on NHS primary-care data.