US Plans Nvidia AI Chip Export Restrictions to Thailand and Malaysia Over China Rerouting Fears.
US Plans Nvidia AI Chip Export Restrictions to Thailand and Malaysia Over China Rerouting Fears.
The United States is preparing new restrictions on exports of advanced AI chips made by American firms like Nvidia to Thailand and Malaysia, over concerns that these technologies could be diverted to China. This move, reported by NationThailand.com referencing Bloomberg News, highlights Washington’s ongoing efforts to close loopholes in technology transfer controls that may benefit Beijing.
According to Bloomberg (4 July 2025), the US Department of Commerce is working on draft regulations to prevent China from obtaining leading-edge AI chips through indirect shipments via Southeast Asian countries. While the proposed rules are still under review and subject to change, the Biden administration has reportedly grown more concerned about Thailand and Malaysia potentially serving as “transit points” for restricted technologies intended for China.
The US is also considering a repeal of its global “AI diffusion rule,” which governs the worldwide distribution of AI technology. Despite this, Washington maintains it will strictly block China from acquiring advanced AI chips, as outlined in export controls introduced in 2022 and widened in 2023 to cover over 40 countries.
No comments have been issued by the US Department of Commerce, Nvidia, or government spokespeople from Thailand or Malaysia regarding the plans.
Last month, US Treasury Secretary Howard Lutnick told Congress that Washington will permit allies to purchase AI chips only if these are used through US-approved data centres managed by certified American cloud providers, to ensure strict oversight and control.
This export strategy aligns with Washington’s wider goal to safeguard sensitive technology and maintain US dominance in AI amid rising US-China tensions.
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