US Issues Huawei Chips Warning, Signaling New AI Diffusion Rule

The U.S. Department of Commerce’s Bureau of Industry and Security (BIS) on May 13 warned entities against using Huawei chips that were developed in violation of U.S. export controls, while announcing that new AI chip trade rules are to come. In January, the outgoing Biden administration finalized an AI Diffusion rule governing how American AI technology is to be distributed around the world. It was meant to go into effect May 15. The BIS on May 13 rescinded the rule, stating it would have burdened American companies with regulations and “undermined” diplomatic relations with trade partners, and that it would issue a replacement rule at a later date....