Overview

• The U.S. Department of Commerce officially rescinded the Biden administration’s AI Diffusion Rule, which was set to take effect on May 15, 2025.
• The Biden-era rule divided countries into tiers with varying export restrictions, aiming to limit U.S.-made AI chip exports to nations like China and Russia.
• New guidance reiterates that using Huawei’s Ascend AI chips anywhere in the world violates U.S. export controls, signaling stricter enforcement.
• The Trump administration plans to replace blanket restrictions with a framework prioritizing direct negotiations with trusted countries.
• Proposals include enhanced oversight of U.S. AI chips, such as tracking features or kill switches, to prevent unauthorized use in Chinese AI development.