The United States Government is contemplating shutting down Chinese companies’ access to American artificial intelligence (AI) chips, Reuters reported on Oct. 13.

The Biden administration aims to close loopholes allowing Chinese companies to acquire American AI chips via overseas subsidiaries. Last year, the U.S. government cut ties with China on chip trading and chip-making tools. Since the ban was only directed at China, Chinese companies could still access the chips needed through overseas subsidiaries.

But this latest move could completely block Chinese companies’ access to U.S. AI chips. Per the report, the move further indicates the U.S.’s effort to assert control in the ongoing AI competition with the Asian country.

Recently, U.S. authorities have been taking steps to hinder China’s progress in AI, particularly in military applications. Reports indicate that U.S. companies like Nvidia and Intel manufacture many of the AI chips China uses.

In response, the U.S. Government has ordered Nvidia and AMD to restrict the sale of their AI chips to specific countries as a precautionary measure.

China was set to overtake the U.S. in the AI war.

Meanwhile, China is strengthening its effort to overtake the U.S. in the ongoing AI war.

CNBC, citing the country’s key ministries, reported that the Chinese government wants to increase its computing power by 50% by 2025.

This plan includes the development of the country’s computing capacity to 300 exaflops from the current 197 exaflops. Contextually, an exaflop is a unit of computing power equivalent to the computing power of two million mainstream laptop computers.

The increased computing power will support applications in industries including finance and education.

The country would also look to improve the security of its supply chain, citing how the U.S.’s export controls have negatively impacted the growth of its technological industry.