The export restrictions mostly covers advanced computing chips used for AI and builds on previous curbs set out last year on exporting certain chips to China itself. The new controls on AI chips will see quotas on exports to about 120 countries but 18 US allies and partners will be exempt from that. The list of allies exempted includes the likes of Japan and the UK.

The restrictions will go into effect in 120 days, according to commerce secretary Gina Raimondo. As such, Trump will have the chance to make changes to this if he pleases to. But either way, China will surely have to deal with a further fallout as tariffs are coming and they might hit fast and hard.

This article was written by Justin Low at www.forexlive.com.