The U.S. banned Nvidia's best chips from going to China. Now it's trying to close a crucial loophole - CNBC

“The United States has extended its export controls to prohibit the sale of Nvidia’s flagship H100 and related AI accelerator chips to Chinese entities, citing national‑security concerns. The move also targets a loophole that allowed foreign subsidiaries and third‑party distributors to re‑export these chips to China under the guise of “non‑U.S. origin” parts. By tightening the definition of “U.S. technology” and expanding licensing requirements, the Commerce Department aims to prevent advanced AI hardware from bolstering China’s military and surveillance capabilities. Expert Analysis: This tighter regime could slow Chinese AI development while prompting U.S. chipmakers to seek alternative markets, potentially reshaping global supply chains. However, the added compliance burden may also increase costs for U.S. firms that rely on China‑based manufacturing partners, influencing pricing and availability of AI solutions domestically.”