Malaysia on Monday imposed immediate restrictions on the export, transshipment and transit of high-performance AI chips made in the United States, aiming to plug regulatory gaps and prevent unauthorised rerouting of sensitive technology to countries including China.The country’s investment, trade and industry ministry said in a statement that all such movements of US-origin AI chips will now require a strategic trade permit, according to AFP.“This initiative serves to close regulatory gaps while Malaysia undertakes further review on the inclusion of high-performance AI chips of US origin” into its Strategic Items List, the government said.The move follows concerns raised by Washington over the transshipment of advanced AI chips via Malaysia, especially amid reports that these chips may have been diverted to Chinese entities despite ongoing US export curbs.Malaysia serves as a key logistics and export hub for high-end AI chips due to its strategic location and deep integration in global supply chains, experts say.Last month, Malaysia said it was investigating reports that a Chinese company had used Malaysian data centres equipped with US-made Nvidia chips to circumvent US export controls. According to a Wall Street Journal report, Chinese engineers allegedly transported hard drives containing training data to Malaysia in March to develop AI models locally, before planning to bring the finished models back to China.The US has tightened restrictions on advanced chip exports to China as part of broader efforts to limit Beijing’s access to cutting-edge technologies seen as vital to AI and defence capabilities.China, in response, has maintained that its firms operate within the bounds of international and domestic laws.“China is willing to work with countries in the region, including Malaysia, to jointly maintain a free and open international trade order,” Chinese foreign ministry spokesman Guo Jiakun said at the time.In Monday’s statement, the Malaysian government reiterated its position, saying it “stands firm against any attempt to circumvent export controls or engage in illicit trade activities by any individual or company.”