Shares of two of Hong Kong's largest technology groups fell Thursday after a report said the U.S. Commerce Department is preparing to finalise restrictions intended to prevent Chinese artificial intelligence companies from remotely accessing advanced chips through data centres based abroad.
According to the report, which said the proposed rules could be unveiled this month, the Commerce Department would broaden the scope of semiconductor export controls enforced by its Bureau of Industry and Security (BIS). The expansion would extend controls to seven additional countries, with the report naming Malaysia, Singapore and Thailand among them.
Market reaction was immediate. Hong Kong-listed Alibaba eased about 5% to HK$95.6 by 05:08 GMT, while Tencent shares fell roughly 1.5% to HK$403.6 in the same time frame.
The restrictions are described as targeting remote use of advanced processors by Chinese companies and as an effort to block the illicit movement of controlled chips into China. The measure would specifically aim to stop companies from leveraging overseas cloud or data-centre services to access advanced artificial intelligence hardware remotely.
The report also noted the development against a backdrop of heightened attention on Nvidia's China-related business and broader U.S. efforts to tighten enforcement of semiconductor export rules. The combination of a potential rules expansion and sharper enforcement has been framed as a factor behind the market moves observed in Hong Kong technology stocks.
Observers and market participants flagged the proposed extension of BIS controls to additional jurisdictions as a notable shift in how export restrictions could be operationalised, particularly where cloud services and cross-border data-centre operations are concerned. The story underscores how trade and export policy developments are increasingly intersecting with AI deployment strategies and chip supply chains.
Summary
U.S. Commerce Department plans to bar Chinese AI firms from remotely accessing advanced chips in overseas data centres, a move that could be announced this month and would add seven countries to existing BIS export controls. The report coincided with a drop in Alibaba and Tencent shares.