Chinese companies such as Alibaba make Qwen and other popular open source AI models. This new rule will have a big impact on that community. Case in point: Alibaba rents advanced Nvidia chips from Megaspeed’s data centers located in Singapore and Malaysia. Megaspeed is the company ran by Huang’s spy mistress.
Obviously the Chinese are going to evade the new rules or find people willing to look the other way. Unless US finds a way to track every data center traffic using advanced Nvidia chips. What this does is it’ll bottle neck the Chinese AI development using Nvidia chips. slows them down so that US can keep the lead (or slow down Chinese lead in some areas).