US drafts rule to close loophole allowing Chinese firms to obtain AI chips through foreign data centers
chips
| Source: Techmeme | Original article
The United States is drafting a rule to close an export‑control loophole that lets Chinese firms obtain AI chips through data centers in countries such as Thailand.
The United States is preparing a new export‑control rule aimed at sealing a loophole that has allowed Chinese firms to obtain advanced AI chips through data‑center services located in third‑party countries, including Thailand. The move follows a White House announcement made shortly after President Donald Trump began his second term in 2025, when officials signaled intent to tighten technology flows to China. According to The Information, the draft rule would extend existing restrictions to cover “indirect” shipments that reach Chinese customers via foreign hosting providers, a pathway that analysts say has been exploited to sidestep the current export regime.
Closing the loophole matters because AI accelerators are a cornerstone of next‑generation machine‑learning models, and unrestricted access could accelerate China’s development of high‑performance AI systems. The United States has framed such controls as essential to preserving its strategic advantage and to preventing the militarisation of AI. At the same time, the proposal raises questions for nations that host data‑center infrastructure for global clients. Thailand, for example, has been positioning itself as a regional hub for AI services, and tighter rules could affect its emerging tech ecosystem and foreign investment.
The next steps will involve the Commerce Department finalising the language of the rule and opening it for public comment, a process that could take several months. Stakeholders will be watching for any carve‑outs or licensing provisions that might mitigate impact on legitimate business. Equally important will be Beijing’s diplomatic response and whether other semiconductor‑exporting allies adopt similar measures, potentially reshaping the global supply chain for AI hardware.
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