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The U.S. Commerce Department closed a loophole in semiconductor export controls on May 31, 2026, preventing Chinese companies from circumventing restrictions by purchasing advanced AI chips through overseas subsidiaries. Previously, entities based in China could acquire restricted chips via foreign

The U.S. Commerce Department issued new guidance over the weekend to tighten export controls on advanced AI chips to Chinese entities, closing a regulatory loophole that may have allowed hundreds of thousands of chips to flow to overseas subsidiaries of Chinese firms. The loophole emerged in May 202