President Biden has introduced new limits on exports of advanced computer chips used for artificial intelligence, as part of an effort to prevent countries like China from acquiring the technology.

According to The New York Times, countries will be sorted into three categories under the new policy. The first is made up of the U.S. and 18 of its closest allies and trading partners, such as Canada, German, Japan, and the United Kingdom among others, with nations in that group exempted from any restrictions on the sale of AI chips. The second group includes so-called "countries of concern," such as China and Russia, who will remain subject to a previous ban on AI chip purchases. The rest of the world makes up the third group, all of whom will be limited in their ability to import AI chips from U.S. manufacturers.

"The United States must act decisively to lead this transition by ensuring that adversaries cannot easily abuse advanced AI," the White House said in a January 13 news release. "In the wrong hands, powerful AI systems have the potential to exacerbate significant national security risks."

Biden's office went on to cite a need to thwart smuggling efforts, close loopholes in trade policies, and establish the U.S. and its allies as the global leaders in AI technology. 

The proposal will next enter a 120-day public comment period to gather feedback from industry players, meaning that it will be up to the next administration to finalize the policy once President-elect Donald Trump takes office on January 20. Speaking to reporters on January 12, U.S. Commerce Secretary Gina Raimondo said that she "fully expects" the Trump White House to make changes to the proposal based on feedback gathered over the next 120 days.

The new limits have already been met with skepticism by U.S. chipmakers, with Nvidia vice president of government affairs Ned Finkle calling them "misguided." 

"While cloaked in the guise of an 'anti-China' measure, these rules would do nothing to enhance U.S. security," Finkle wrote in a January 13 blog post. "Rather than mitigate any threat, the new Biden rules would only weaken America’s global competitiveness, undermining the innovation that has kept the U.S. ahead."

Oracle executive vice president Ken Glueck echoed those sentiments in a separate blog post, labeling the policy "draconian" and "destructive."