The US says the ban on AI chip shipments applies to Chinese companies outside China

The Commerce Department issues guidance on chip restrictions amid concerns about gaps in the export control system.

The United States has issued a notice reaffirming its restrictions on shipments of semiconductors to subsidiaries of Chinese companies outside China amid concerns about gaps in Washington’s export control regime.

The Commerce Department said in guidance released Sunday that its licensing requirements for exporting advanced AI chips apply to all companies headquartered or with a parent company in China.

The Bureau of Industry and Security (BIS), part of the Commerce Department, said it issued the clarification in response to questions about whether it was enforcing pre-existing licensing requirements after repealing former President Joe Biden’s artificial intelligence proliferation framework.

“The answer is yes,” the BIS said in the statement.

Revealed in…