Know when policy changes access.

Executive summary

BIS’s January 2025 AI Diffusion Rule introduced a worldwide licensing framework for specified advanced computing items.[1] In May, BIS said it would not enforce the rule and planned to formalize its rescission.[3]

That rollback did not remove every restriction. In May 2026, BIS confirmed that a preexisting requirement still covered certain shipments to entities with headquarters or an ultimate parent in Country Group D:5 or Macau, even when the recipient was elsewhere.[4] For a compute buyer, the destination alone was not enough to establish access.

Selected primary-source evidence

1. [1]A worldwide license requirementView source excerpt

   U.S. Bureau of Industry and Security · 90 FR 4544, page 4549 · 2025-01-15

   The January 2025 interim final rule established a worldwide license requirement for specified advanced computing chips and systems, including ECCNs 3A090.a, 4A090.a and corresponding .z items. The framework also provided license exceptions and validated-end-user authorizations; it was not a blanket export ban.[1]

   [1] https://www.govinfo.gov/content/pkg/FR-2025-01-15/pdf/2025-00636.pdf

   Exact transcription

   A. New Worldwide License Requirements With this IFR, BIS establishes a worldwide license requirement for ECCNs 3A090.a, 4A090.a, and corresponding .z items in new § 742.6(a)(6)(iii)(A). A worldwide license requirement for these items, which includes those items subject to the EAR’s jurisdiction through the advanced computing foreign direct product rule (FDPR), will protect U.S. national security and foreign policy interests by allowing BIS to scrutinize any transaction that presents an elevated risk of diversion or misuse and by providing the U.S. government with visibility into the locations, end users, and end uses of advanced ICs. Further, as discussed below, diffusion of AI compute through the Data Center VEU Authorization will allow for companies around the world to benefit from allocations of AI compute in validated, protected environments.

   Framework for Artificial Intelligence Diffusion · Page 4549 (PDF page 6) · Captured 2026-09-09

2. [3]BIS directed non-enforcementView source excerpt

   U.S. Bureau of Industry and Security · announcement PDF dated May 12, 2025 · 2025-05-12

   BIS’s announcement PDF, dated May 12, 2025, said enforcement officials had been instructed not to enforce the AI Diffusion Rule. It also said BIS planned a regulation to formalize rescission and a future replacement rule.[3]

   [3] https://media.bis.gov/sites/default/files/documents/05.07%20Recission%20of%20AI%20Diffusion%20Press%20Release.pdf

   Exact transcription

   BIS plans to publish a regulation formalizing the rescission and will issue a replacement rule in the future. Under Secretary of Commerce for Industry and Security Jeffery Kessler has instructed BIS enforcement officials not to enforce the Biden Administration’s AI Diffusion Rule, stating: “The Trump Administration will pursue a bold, inclusive strategy to American AI technology with trusted foreign countries around the world, while keeping the technology out of the hands of our adversaries. At the same time, we reject the Biden Administration’s attempt to impose its own ill- conceived and counterproductive AI policies on the American people.”

   Department of Commerce Announces Rescission of Biden-Era Artificial Intelligence Diffusion Rule, Strengthens Chip-Related Export Controls (PDF dated May 12, 2025) · Page 1 · Captured 2026-09-09

3. [4]The buyer’s headquarters still matteredView source excerpt

   U.S. Bureau of Industry and Security · enforcement guidance, page 1 · 2026-05-31

   In May 2026, BIS clarified that the preexisting license requirement still applied to specified advanced computing items for entities headquartered in Country Group D:5 or Macau, or with an ultimate parent headquartered there, even when located elsewhere. Exporters were to seek licenses unless an available exception applied.[4]

   [4] https://www.bis.gov/media/documents/bis-guidance-may-31-2026.pdf

   Exact transcription

   Recently, BIS has received questions as to whether the preexisting license requirement established in November 2023 is still being enforced for “.a” advanced computing items to Country Group D:5 and Macau-headquartered entities located outside of destinations that were subject to a license requirement prior to the AI Diffusion Rule. The answer is yes. Specifically, a license requirement continues to apply under § 742.6(a)(6)(iii)(A) of the EAR to all destinations outside the United States for these advanced computing items when such items are for entities headquartered in, or whose ultimate parent company is headquartered in, Country Group D:5 or Macau. Because this license requirement predates the AI Diffusion Rule, BIS’s non-enforcement policy with respect to the destination-based license requirements for these advanced computing items under § 742.6(a)(6)(iii)(A) applies only to the extent such items are not for entities headquartered in or that have ultimate parent companies headquartered in Country Group D:5 or Macau. Exporters should continue to seek BIS licenses for such transactions, unless a license exception specified in § 740.2(a)(9)(ii) is available. Bona fide operators of data centers who are otherwise engaged in activities consistent with the EAR are not required to cease the ongoing use, storage, disposal, or servicing of advanced computing items because of this guidance, until further notice from BIS.

   Guidance Regarding Enforcement of License Requirements for Advanced Computing Items for Entities Headquartered in Country Group D:5 and Macau · Page 1 · Captured 2026-09-09

Watch next

Before applying this historical case to a shipment, check later rules and enforcement guidance, the recipient and ultimate parent, and any license or exception conditions. A replacement framework or revised headquarters-based controls could change the answer. This assessment does not certify current legal requirements or any transaction’s eligibility.

Executive summary

China’s October 2025 Announcement No. 61 extended licensing to specified overseas rare-earth exports and explicitly named advanced semiconductor and potentially military AI end uses for case-by-case approval.[5] In November, No. 70 suspended that announcement alongside five others through November 10, 2026.[6]

The suspension did not name April’s No. 18, which set a separate licensing and customs-query baseline.[6][7] A pause in the overseas expansion was not evidence that every rare-earth shipment could move without permission.

Selected primary-source evidence

1. [5]The October rule explicitly named semiconductor and AI usesView source excerpt

   Ministry of Commerce of China · Announcement No. 61 · 2025-10-09

   Announcement No. 61 required case-by-case approval for covered exports involving specified advanced semiconductor end uses or R&D of AI with potential military uses—not a blanket ban on AI.[5]

   [5] https://www.mofcom.gov.cn/zwgk/zcfb/art/2025/art_7fc9bff0fb4546ecb02f66ee77d0e5f6.html

   Exact transcription

   四、最终用途为研发、生产14纳米及以下逻辑芯片或者256层及以上存储芯片，以及制造上述制程半导体的生产设备、测试设备和材料，或者研发具有潜在军事用途的人工智能的出口申请，逐案审批。

   Salience Path working translation

   Export applications whose end uses are research, development or production of logic chips at 14 nanometres or below, or memory chips with 256 layers or more; production equipment, testing equipment and materials for manufacturing semiconductors at those process levels; or research and development of artificial intelligence with potential military uses, are reviewed for approval case by case.

   商务部公告2025第61号 公布对境外相关稀土物项实施出口管制的决定 · Page Official notice · paragraph IV · archived official webpage rendering (not a live capture) · Captured 2026-09-09

2. [6]The pause named six announcementsView source excerpt

   Ministry of Commerce and General Administration of Customs of China · Announcement No. 70 · 2025-11-07

   Announcement No. 70 suspended Nos. 55, 56, 57, 58, 61 and 62 with immediate effect through November 10, 2026. Its list did not include April’s No. 18.[6]

   [6] https://www.mofcom.gov.cn/zwgk/zcfb/art/2025/art_b1ec77dd3f0d4762952904df7cdaadec.html

   Exact transcription

   经批准，自即日起至2026年11月10日，商务部、海关总署公告2025年第55号、56号、57号、58号，及商务部公告2025年第61号、62号暂停实施。

   Salience Path working translation

   With approval, implementation of Ministry of Commerce and General Administration of Customs Announcements 2025 Nos. 55, 56, 57 and 58, and Ministry of Commerce Announcements 2025 Nos. 61 and 62, is suspended with immediate effect through 10 November 2026.

   商务部、海关总署公告2025年第70号 公布暂停实施商务部、海关总署公告2025年第55号、56号、57号、58号及商务部公告2025年第61号、62号的决定 · Page Official notice · operative paragraph · archived official webpage rendering (not a live capture) · Captured 2026-09-09

3. [7]The April rule had a separate licensing pathView source excerpt

   Ministry of Commerce and General Administration of Customs of China · Announcement No. 18 · 2025-04-04

   Announcement No. 18 required licenses for its specified exports. It also said customs would withhold release while querying doubtful declarations. No. 70 did not name this April measure for suspension.[7][6]

   [7] https://www.mofcom.gov.cn/zwgk/zcfb/art/2025/art_9c2108ccaf754f22a34abab2fedaa944.html

   Exact transcription

   出口经营者应加强物项识别，报关时应在备注栏中注明是否属于管制物项，属于管制物项的应列明两用物项出口管制编码。对上述填报信息存有疑议的，海关将依法质疑，质疑期间出口货物不予放行。

   Salience Path working translation

   Exporters should strengthen item identification and state in the customs declaration remarks whether the goods are controlled; controlled goods must include the dual-use export-control code. If customs has doubts about the declared information, it will raise a query according to law, and the export goods will not be released while that query is pending.

   商务部 海关总署公告2025年第18号 公布对部分中重稀土相关物项实施出口管制的决定 · Page Official notice · customs-query paragraph · archived official webpage rendering (not a live capture) · Captured 2026-09-09

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Check later amendments or extensions before relying on the stated suspension window. Confirm the relevant item, exporter, end user, end use and authorization route for any shipment. This dated case does not classify a product or certify current legal requirements.