The Biden administration may close a loophole to deny Chinese companies from buying American-made AI chips through overseas subsidiaries, according to a new report.

Reuters reported Thursday night that U.S. rules restricting the export of AI chips and chip-making tools to China may be tightened later this month. Among the changes could be a tweak that would bar those types of sales to units of Chinese companies that are based outside of China, a loophole that had allowed Chinese companies to evade the restrictions, the report said.

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