The U.S. Department of Commerce has issued new guidance to prevent Chinese companies from obtaining advanced U.S. artificial intelligence (AI) chips, such as Nvidia’s most sophisticated Blackwell processors, through overseas subsidiaries.
The May 31 guidance clarifies that export licenses are required for entities headquartered in China or Macau, regardless of where their affiliates are located.
The U.S. Commerce Department’s Bureau of Industry and Security (BIS) said that licensing requirements for advanced computing items destined for China- or Macau-headquartered entities were first established in November 2023 and remain in effect.
The agency said the requirement applies even when those entities are located outside China or Macau.
The clarification follows confusion over a May 2025 announcement by the BIS that it would not enforce certain parts of the Biden-era AI diffusion rule.
The rule was designed to restrict sales of advanced AI chips to strategic rivals while allowing broader access for U.S. allies.
The BIS said the policy change did not remove existing licensing requirements for exports involving Chinese or Macau-based customers, meaning companies must still obtain licenses unless an exemption applies.
The guidance also states that legitimate data center operators can continue to use, maintain, store, or replace advanced AI chips and equipment they already own.
The clarification does not require companies to shut down or remove existing systems.
Nvidia’s sales of advanced AI chips to China remain subject to U.S. export controls.
The Trump administration created a framework in 2025 allowing certain chips, including the H200, to be sold to approved Chinese customers under Commerce Department oversight.
Trump said in a Dec. 8, 2025, post on Truth Social that sales would be permitted subject to a 25 percent fee benefiting the U.S. government and limited to approved Chinese customers.
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