The United States reportedly will tighten its export controls on chips and semiconductors to restrict China's ability to circumvent trade restrictions through partner nations.

The Biden administration intends to implement new rules that will expand sweeping U.S. restrictions on the shipments of advanced chips and chipmaking tools, according to Reuters and Bloomberg. The new rules will block specific chips used to power artificial intelligence from being sold to China while demanding others' sale to be reported to the Department of Commerce, according to officials. The new restriction guidelines will focus on tech companies' ability to sell graphics chips used in AI applications. They will also limit the ability of Chinese firms to evade Commerce's restrictions by acquiring the chips through a third party or partner nation. These rules will expand the Biden administration's set of export controls that it initially launched in October 2022 and has subsequently expanded.

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People involved with the process said that the new restrictions will be published early this week, although the process could be delayed.

The new restrictions could affect specific chips created to serve the Chinese market. When the Biden administration announced the export curbs in October, companies like Nvidia tried to accommodate the demands by creating separate products to fit within U.S. export restrictions while serving the needs of China. If the new rules are passed, they will expand the category of affected chips to include several of these products, officials said.

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President Joe Biden announced the export controls as part of a more significant effort to restrict the Chinese military and economy and to block China from developing AI and quantum computing capabilities sufficient to compete with the U.S. military. China has regularly pushed back, claiming that it is an attempt by the U.S. government to harm Chinese business.

Biden's efforts have pressured the Chinese economy and forced Beijing to step up and provide more than $40 billion in government subsidies to Chinese chipmakers to help them figure out how to catch up with the U.S. in chip development.