US Advances AI Chip Export Curbs, China Warns of Rare Earth Retaliation
U.S. House panel advanced the Multilateral Alignment of Technology Controls on Hardware Act to curb AI chip exports, prompting China’s Commerce Ministry to warn of supply chain disruption and consider countermeasures on rare earth inputs. Meanwhile, Nasdaq AI stocks rally with Nvidia’s full-stack GPU-to-LPU offering cited as a buy opportunity.
1. US Export-Control Legislation
The House Foreign Affairs Committee advanced the Multilateral Alignment of Technology Controls on Hardware Act, proposing tighter curbs on high-end AI chip-manufacturing equipment exports that underpin Nvidia’s GPU supply chain.
2. Chinese Commerce Ministry’s Warning
China’s Commerce Ministry warned that the new export measures risk destabilizing global semiconductor supply chains and said it will assess countermeasures, potentially including rare earth mineral export restrictions to shield domestic chipmakers.
3. Impact on Nvidia and Market Outlook
Despite regulatory headwinds, investors remain bullish on AI leaders as Nvidia’s expansion into CPUs, DPUs and LPUs supports record valuations at foundries and fuels a second wave of Nasdaq AI stock gains.