Biden administration proposes new AI chip export rules facing industry backlash

The Biden administration has proposed new export rules for AI chips, primarily targeting China, but affecting 120 countries, including some in Europe. The framework aims to balance national security with economic interests, raising concerns among industry leaders and EU officials. The new rules would restrict chip access for countries like Mexico, Portugal, and Switzerland, while allowing 20 key allies, including the UK and Japan, to import without limits. Critics argue the restrictions could harm global supply chains and innovation. The incoming Trump administration will have the final say on these rules, which could impact the US's competitive edge in AI technology. The framework includes provisions for government-to-government deals and exemptions for trusted companies, ensuring major cloud providers can continue their operations.