The Globe and Mail reports in its Monday, June 1, edition that the U.S. Department of Commerce announced on Sunday that it will close a loophole allowing the export of advanced chips, such as Nvidia's and AMD's, to Chinese entities located outside China. A Reuters dispatch to The Globe reports that this guidance suggests that U.S. artificial intelligence chips may have been reaching subsidiaries of Chinese AI firms in places like Malaysia for nearly a year, despite efforts to restrict semiconductor access for Chinese companies. The new guidance was posted on the Commerce Department's website. It's unclear how many chips were exported when the Trump administration left the door open, but one industry source estimated the number in the hundreds of thousands. Recently, the Commerce Department announced that it would enforce licence requirements for advanced chips to Chinese entities, even if they're located outside China. The Commerce Department created the opening when it announced in May, 2025, that it would not be enforcing the AI Diffusion rule issued in the last days of the Biden administration. The rule governed global access to AI chips. Technology expert Chris McGuire said on Sunday, "This is a huge problem."