“New Commerce Department regulations will require further licenses for computer chip giants like Nvidia Corp and Micro Devices to deliver chips to China, particularly powerful artificial intelligence chips, Reuters reported Monday. The Biden administration is reportedly in the process of drafting letters informing relevant companies of the regulations changes.

‘The strategy is to choke off China and they have discovered that chips are a choke point. They can’t make this stuff, they can’t make the manufacturing equipment,’ Jim Lewis, a technology expert at the Center for Strategic and International Studies, told Reuters. ‘That will change.”