Biden Administration said to give China heads up on chip export curb expansion
William_Potter
The Biden Administration is reportedly giving China an additional warning that it will update its rules on export controls for semiconductors and semiconductor equipment, perhaps as soon as next month. 
The Commerce Department is working to update the restriction exports - first announced this past October - and close certain loopholes related to AI chips, Reuters reported, adding that the decision could help stabilize the relations between the two countries.
"The PRC has been expecting an update around the one year anniversary, based on conversations with administration officials," a U.S. official told the news outlet, referring to the anniversary date of the rules on October 7, 2022.
The Commerce Department did not immediately respond to a request for comment from Seeking Alpha.
The update would also see further limits placed on access in accordance with new rules from the Netherlands and Japan, the news outlet added.
Netherlands and Japan joined the U.S.'s decision to crack down on semiconductor sales and equipment sales to China, citing national security concerns.
Nvidia (NASDAQ:NVDA), AMD (NASDAQ:AMD) are two of the most notable  semiconductor companies that have been impacted by the U.S.'s export controls in recent months, while Dutch semiconductor equipment maker ASML (NASDAQ:ASML) has also been in the crosshairs.
In June, Bank of America warned that Nvidia (NVDA) could see as much as a 7% impact to revenue if additional restrictions on AI chip exports were placed on China.
Last month, ASML (ASML) said that it can ship chip equipment machines to China until the end of the year amid export curbs from the country.
Under the Netherlands export control rules, it expects 24 permits to be applied for once and 20 permits on an annual basis.
Late last year, ASML (ASML) CEO Peter Wennink said if Chinese semiconductor companies were not able to expand capacity past current metrics, it would not alter the chip equipment firm's outlook for 2030 "that much."
Dear readers: We recognize that politics often intersects with the financial news of the day, so we invite you to click here to join the separate political discussion.

More on artificial intelligence

What Does AI And EUV Mean For ASML?
Nvidia Was Up 235% In 2023, Don't Expect It To Continue (Rating Downgrade)
Nvidia: Strong Buy For The Godfather Of AI
Nvidia jumps as Goldman adds to Conviction List, but chips mixed to start the week
Citi highlights Info Tech as an Overweight sector heading into Q4