The Department of Commerce issued guidance May 31, 2026 clarifying that licensing requirements for advanced AI chip exports apply to all businesses with headquarters or parent companies in China, even when operating outside China.
BIS issued the clarification after rescinding the Biden Framework for Artificial Intelligence Diffusion in May 2025, which had governed global chip access.
Nvidia spokesperson: “The guidance reaffirms that NVIDIA’s sales and vetting process is correct – consistent with our existing approach, licences are required to ship controlled products to PRC-headquartered companies.”
Former State Department official Chris McGuire: “This clarification does make clear that Blackwell shipments to China-headquartered companies outside of China are now illegal again – which is good, although obviously we have to see how many shipments have already gone to assess how much damage was done.”
The guidance does not require companies to stop using already-deployed chips.