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U.S. Closes Loophole in AI Chip Purchases by Chinese Subsidiaries: Hundreds of Thousands May Have Been Acquired

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U.S. Closes Loophole in AI Chip Purchases by Chinese Subsidiaries: Hundreds of Thousands May Have Been Acquired

The U.S. Department of Commerce’s BIS announced new guidance to regulate the purchase of advanced AI chips by overseas subsidiaries of Chinese companies. Reports suggest hundreds of thousands of chips may have already evaded these controls.

June 1, 2026

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