Key facts
- Former Trump officials believe a loophole allowed Chinese firms to buy Nvidia Blackwell chips.
- The loophole reportedly involved overseas subsidiaries circumventing export bans.
- New guidance is being developed to close the loophole.
- Officials fear the chips may have already been acquired by Chinese companies.
Former Trump administration officials are expressing concern that a loophole in existing US export control regulations may have allowed Chinese companies to legally acquire advanced Nvidia Blackwell chips. The officials believe that the gap in the rules, which reportedly involved overseas subsidiaries, enabled these purchases despite the ban on exporting such high-end technology to China. While new guidance is being developed to close this loophole, there is worry that the chips may have already been moved into China. The situation highlights a potential practical failure of the export ban, which was intended to restrict China's access to cutting-edge semiconductor technology.