The Trump administration is preparing to impose export restrictions on artificial intelligence (AI) chips to Malaysia and Thailand. This move aims to prevent China from circumventing existing U.S. semiconductor export controls by using these countries as intermediaries for smuggling advanced AI chips, including those produced by companies such as Nvidia. The planned curbs represent an effort to tighten technology transfer restrictions amid ongoing concerns about China's access to cutting-edge semiconductor technology. This draft regulation also marks the Trump administration's first significant step to revise and potentially overhaul the AI diffusion policies established under the Biden administration. The U.S. initially imposed export restrictions on advanced chips to China in 2022 and has been progressively strengthening these measures to curb the flow of sensitive technology.