US Commerce Dept. Blocks China's Bypass Exports of Advanced AI Chips

The US Department of Commerce has blocked China's bypass exports of cutting-edge AI chips. In an announcement on January 31 (local time), the Commerce Department stated that it would expand the application of existing licensing regulations for advanced AI chips to companies located outside China, in addition to those within the country.

This measure is intended to close regulatory loopholes that allowed overseas subsidiaries of Chinese companies located in third countries such as Malaysia to obtain the latest AI chips from US firms. It is understood that these bypass export channels emerged over the past year following the US administration's decision to defer the implementation of AI regulations in May of the previous year.