The Biden administration is planning to impose more restrictions on chip sales to China and Russia, according to a report.

Biden may impose new sanctions on AI chip exports to China, limiting sales to allies like Germany and Japan. US companies can apply for exceptions.

With an eye on national security, the new approach seeks to protect U.S. technical superiority. Warning that the proposed limits might compromise America's competitive advantage in the global AI race and slow down economic development, Nvidia has rejected them. After the news, after-hours trading saw Nvidia's shares drop almost 1%.