Those rules are set to be tightened in the coming days. A person familiar with the situation said the measures could be included in those new restrictions.
Washington is now considering ways to close the loophole, sources said, a move that has not been previously reported. The Commerce Department declined to comment. A representative from the Chinese Embassy in Washington did not immediately respond to a request for comment. "We don't actually know how big a problem this is," said Hanna Dohmen, a research analyst at Georgetown University's Center for Security and Emerging Technology .
Sources said the new rules on AI chips expected this month will likely apply those same restrictions more broadly to all companies in the market.
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