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U.S. updates export curbs on AI chips and tools to China

FILE PHOTO: Illustration shows U.S. and Chinese flags

WASHINGTON (Reuters) -The Biden administration on Friday revised rules aimed at making it harder for China to access U.S. artificial intelligence (AI) chips and chipmaking tools, part of an effort to hobble Beijing's chipmaking industry over national security concerns.

The rules, released in October, seek to halt shipments to China of more advanced AI chips designed by Nvidia and others as Washington cracks down on Beijing over concerns its advancing tech sector could help boost China's military.

The new rules, which run 166 pages in length, go into effect on Thursday. They clarify, for example, that restrictions on chip shipments to China also apply to laptops containing those chips.

The Commerce Department, which oversees export controls, has said it plans to continue updating its restrictions on technology shipments to China as it seeks to bolster and fine-tune the measures.

(Reporting by Alexandra Alper, David Shepardson and Kare Freifeld; Editing by Bill Berkrot and William Mallard)