US tightens export controls to close loopholes for Chinese-linked companies

The United States has tightened export controls on advanced chips, closing a loophole that previously allowed companies with Chinese ties to circumvent restrictions, according to the US Department of Commerce’s Bureau of Industry and Security (BIS).

In new guidance published on Sunday, May 31, the agency stressed that export restrictions on advanced processors apply not only to direct shipments to China, but also to foreign companies whose headquarters or parent entities are based in China.

Amid the global race in artificial intelligence, chips from the US company Nvidia play a central role in the industry. Earlier, the administration of US President Donald Trump imposed trade restrictions affecting the company’s most advanced products intended for the Chinese market.

The new measures highlight Washington’s continued hardline stance toward Beijing, despite recent attempts by Trump to build more stable relations with Chinese President Xi Jinping.

In recent years, Nvidia has sought to regain its position in the Chinese market, which previously generated billions in revenue for the company. However, escalating US–China tensions have reduced that business to a minimum.

For Nvidia, the world’s most valuable company, access to the Chinese market remains critical. CEO Jensen Huang has previously described China’s AI chip segment as a multi-billion-dollar opportunity.

By Jeyhun Aghazada