INSUBCONTINENT EXCLUSIVE:
The Biden-era chip restriction framework, which we covered in January, established a three-tiered system for regulating AI chip exports
The first tier included 17 countries, plus Taiwan, that could receive unlimited advanced chips
A second tier of roughly 120 countries faced caps on the number of chips they could import
The administration entirely blocked the third tier, which included China, Russia, Iran, and North Korea, from accessing the chips.Commerce
Department officials now say they "didn't like the tiered system" and considered it "unenforceable," according to Reuters
While no timeline exists for the new rule, the spokeswoman indicated that officials are still debating the best approach to replace it
The Biden rule was set to take effect on May 15.Reports suggest the Trump administration might discard the tiered approach in favor of a
global licensing system with government-to-government agreements
This could involve direct negotiations with nations like the United Arab Emirates or Saudi Arabia rather than applying broad regional
However, the Commerce Department spokeswoman indicated that debate about the new approach is still underway, and no timetable has been
established for the final rule.
