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US Commerce Department Closes Loophole Letting Chinese AI Firms Acquire Advanced Chips Through Overseas Subsidiaries

US Commerce Department Closes Loophole Letting Chinese AI Firms Acquire Advanced Chips Through Overseas Subsidiaries

Jun 02, 2026
TNW | Nvidia

The US Commerce Department closes a major loophole that allowed Chinese AI firms to secretly acquire advanced Nvidia and AMD chips through overseas subsidiaries, tying export restrictions to a company's headquarters nationality rather than physical location — though hundreds of thousands of chips may have already slipped through during a …

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