The US government is reportedly planning new restrictions on the export of AI chips to Malaysia and Thailand, aiming to prevent suspected smuggling to China. According to Bloomberg, the Trump administration intends to update current rules so that strict controls remain in place for China and more than 40 other countries, while lifting previous global regulations on AI technology transfers.

A draft from the US Department of Commerce would let companies headquartered in the US continue supplying chips to the US and “a few dozen friendly nations” without special authorization for several months. Nvidia and officials from Malaysia and Thailand did not comment on the plans. Meanwhile, China is investing heavily in its own chip infrastructure.