US Commerce Department moves to block China’s remote access to Nvidia chips

The US Commerce Department has expanded export controls to prevent Chinese entities from remotely accessing Nvidia chips, closing a loophole that previously allowed overseas subsidiaries and data centers to use restricted processors. The rule shifts the export-control framework toward ownership and control rather than the physical location of the hardware, potentially reshaping global tech trade flows. Nvidia has not disclosed a specific revenue impact from the change. The move matters because remote access had let Chinese firms tap advanced AI compute hosted outside the country despite curbs on direct chip shipments. What to watch next is how broadly the department defines "access" and whether allied data centers hosting Nvidia hardware for Chinese customers face new compliance burdens.