The United States has moved to close a loophole in chip export controls by making clear that restrictions on advanced processors also apply to Chinese-linked companies based abroad.
The restrictions apply not only to direct exports to China, but also to companies abroad that have their headquarters or parent company in China, the US Bureau of Industry and Security said in new guidance posted on the Commerce Department's website on Sunday.
In the race to develop artificial intelligence, chips made by US company Nvidia are considered essential. US President Donald Trump imposed trade restrictions on China covering Nvidia's most powerful products.
The new measure suggests Washington is maintaining a hard line towards Beijing, even though Trump has recently sought a more harmonious relationship with Chinese President Xi Jinping.
Nvidia has recently tried to regain a foothold in the Chinese market. The company once generated billions of dollars in sales there before tensions between Washington and Beijing brought the business almost to a standstill.
For Nvidia, the world's most valuable company, relations with China carry major financial stakes. Chief executive Jensen Huang has previously described China's AI chip market as a multibillion-dollar opportunity.
