The U.S. Commerce Department’s updated rules restricts firms from selling certain high-performance semiconductors to Chinese buyers and require them to notify authorities for others. Commerce Secretary Gina Raimondo said the moves are meant to combat Beijing’s “military-civil fusion strategy.” (The Logic)

Talking point: Santa Clara, Calif.-based Nvidia makes the chips used to train breakthrough AI systems, and the U.S. is seeking to keep those components out of China. The new controls specifically target products the firm designed for the Chinese market in response to a preliminary set of rules. Nvidia’s share price fell as much as 7.84 per cent in Tuesday trading on the Nasdaq; the stock had been on an AI hype-cycle-fuelled run. On a visit to Beijing last month, Raimondo told Chinese officials that U.S. export controls weren’t designed to contain China’s growth, and would only target technologies with “clear national security or human rights impacts.” But this week, she told reporters that clear distinctions between commercial and military technologies are tough to make.