Commerce closes Blackwell GPU loophole used by Chinese AI firms to buy chips via overseas subsidiaries

The Commerce Department issued guidance — effective immediately — requiring export licenses for Nvidia Blackwell GPUs going to any China-headquartered entity, including intracompany transfers through subsidiaries in Malaysia, Singapore, and other third-party hubs. Industry sources estimate hundreds of thousands of chips reached Chinese AI firms in the roughly 13 months since the Trump administration halted enforcement of Biden's AI Diffusion rule in May 2025; this guidance closes that subsidiary routing.

Source: qz.com ↗