The US Department of Commerce has closed a loophole that allowed Chinese companies to bypass chip export controls by routing purchases through subsidiaries in Malaysia or Singapore. Effective May 31, the Bureau of Industry and Security mandates that shipments of advanced computing chips to entities headquartered in China require export licenses, regardless of the purchasing subsidiary's location. This move specifically targets Nvidia's Blackwell and Rubin processors and AMD's MI350x chips. The new guidance shifts the compliance focus from the shipment's destination to the entity's ultimate control, requiring licenses for Chinese-headquartered companies. Nvidia confirmed that the guidance does not alter its existing licensing obligations but changes who can purchase without a license. This action is part of a broader US strategy to maintain technological superiority by restricting China's access to advanced AI hardware.