The U.S. will take steps to prevent American chipmakers from selling semiconductors to China that circumvent government restrictions, a U.S. official said, as part of the Biden administration’s upcoming actions to block more AI chip exports.
The new rules, details of which Reuters is reporting for the first time, will be added to sweeping U.S. restrictions on shipments of advanced chips and chipmaking equipment to China unveiled last October. The updates are expected this week, other people familiar with the matter said, though such timetables often slip.
The new rules will block some AI chips that fall just under current technical parameters while demanding companies report shipments of others, said the official, who provided information on condition of anonymity.
A spokesperson for the U.S. Department of Commerce, which oversees export controls, declined to comment.
The latest crackdown on tech exports to China coincides with U.S. efforts to thaw difficult relations between the world’s two largest economies. Several senior members of the Biden administration have met their Chinese counterparts in recent months, and the latest round of rules risks complicating the diplomatic effort.
The Biden administration has said it designed the export curbs to keep U.S. chips and equipment from strengthening China’s military. Beijing has accused the United States of abusing export controls to suppress Chinese companies. The restrictions marked a historic shift in U.S.-China tech policy.
The Chinese embassy in Washington did not immediately respond to a request for comment.
Last year, government restrictions kept Nvidia (NVDA.O), the world’s most valuable chipmaker, from shipping two of its most advanced AI chips to Chinese customers, chips that have become the industry standard for developing chatbots and other AI systems.