China's Ministry of Commerce has previously accused the U.S. of abusing export controls and called for it to "stop its unreasonable suppression of Chinese companies." Washington has been working to close other loopholes that allow the AI chips into China. In August, it told Nvidia and AMD to restrict shipments of the AI chips beyond China to other regions, including some countries in the Middle East. Sources said the new rules on AI chips expected this month will likely apply those same restrictions more broadly to all companies in the market. But sources say the Biden administration is grappling with that issue as well.

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Persons: Florence Lo, Biden, Greg Allen, Hanna Dohmen, George, CSET, Timothy Fist, Alexandra Alper, Karen Freifeld, Chris Sanders, Anna Driver Organizations: REUTERS, United, Reuters, Center for Strategic, International Studies, Commerce Department, Embassy, China's Ministry of Commerce, U.S, Georgetown University's Center for Security, Emerging Technology, International Affairs, George Washington University’s School of International Affairs, Nvidia, Xilinx, Intel, AMD, Amazon Web Services, Washington, New, New American Security, Thomson Locations: United States, Beijing, China, U.S, Shenzhen . Washington, Singapore, Washington, Georgetown, Microsemi . Washington, New American