The US Department of Commerce is developing regulations to prevent Chinese entities from remotely accessing Nvidia chips located outside of China. This initiative addresses a loophole where companies utilize cloud computing to bypass physical export restrictions on advanced AI hardware.
The policy builds upon guidance issued in May 2026, which requires China-headquartered firms to obtain licenses for GPUs like the Blackwell and H200 models, regardless of their physical location. This measure specifically targets the use of overseas subsidiaries to acquire restricted technology.
Legislative efforts include the Remote Access Security Act, which passed the House in January 2026 with a 369-22 vote. The bill redefines exports to include cloud-based access to restricted hardware. Additionally, Congress is considering chip tracking requirements within the FY2027 defense authorization bill.
Regulators are currently investigating the diversion of chips through Southeast Asian intermediaries. As of November 2026, probes into approvals granted to firms linked to restricted entities remain ongoing. Meanwhile, reports indicate approximately 600,000 Nvidia H200 units are stockpiled in Hong Kong.
