Chinese chip companies have localised much of their supply chain in recent years, experts say, potentially limiting the impact of Washington’s new rules.

The trade war between the world's two most powerful economies escalates after President-elect Donald Trump last week to raise tariffs on imports from China, Canada and Mexico.

The updated rules have “two primary objectives,” according to the BIS: slowing China’s advanced AI developments that have “the potential to change the future of warfare” and “impairing” China’s development of its chip ecosystem.