The Commerce Department is preparing a September rulemaking to prohibit Chinese AI firms from renting Nvidia GPU compute through Southeast Asian data centers, attempting to close a regulatory gap created by the rescission of the Biden-era Foundry Due Diligence Rule. Legal experts and legislative history indicate the Bureau of Industry and Security likely lacks the statutory authority to enforce this regulation under existing export control definitions, which classify remote compute access as non-export events. The proposed rule faces immediate legal challenges unless Congress passes the Remote Access Security Act (RASA), which has bipartisan House support but remains stalled in the Senate. This structural enforcement gap allows Chinese labs like Moonshot AI to continue accessing advanced US chips via offshore intermediaries despite aggressive physical chip restrictions.
255 other tracked developments touching the same claims.