Chinese AI stocks experience a decline amid reports of potential US restrictions on chip exports.

U.S. chip makers, including Nvidia, could be affected by these potential curbs, expected to be implemented in July.

The decline in China's CSI artificial intelligence index by 3% triggered a drop in the shares of companies such as Inspur Electronic Information Industry and Chengdu Information Technology.

Alibaba's Hong Kong-listed shares dropped approximately 1.6% after the news, and Tencent also experienced a decline of 1.58%.

The U.S. has expressed concerns about China's progress in AI technology, leading to the proposed restrictions on chip shipments.

The U.S. Commerce Department may prevent the shipment of chips by Nvidia and other chip makers to China and other countries of concern without obtaining a license.

 Previous efforts by the U.S. aimed to limit China's access to advanced chip technology, including implementing rules to cut off China from advanced chip equipment.

Beijing banned Chinese operators of critical information infrastructure from purchasing Micron Technology products due to perceived security risks.

The U.S. reportedly urged South Korea not to allow domestic chip makers to fill the gap left by Micron in China.

Nvidia and AMD have already faced restrictions since September, preventing them from selling advanced chips to China and Hong Kong.

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