Alibaba Closes at $101.52 as Washington Prepares Rule to Block Remote Chinese Access to Chips
Key Facts
Alibaba shares listed in the United States closed at $101.52 on November 11, compared with $102.72 in the previous session, while Tencent shares closed at $51.36, after $52.71. In coverage published that evening, Investing.com cited The Information as reporting that the U.S. Commerce Department was preparing to finalize a rule barring Chinese artificial intelligence companies from remotely accessing advanced chips through data centers in other countries. The report said the rule was aimed at limiting remote access and the smuggling of chips into China. It could be announced during November, while government consultations were still underway.
The coverage said the expanded controls would apply to seven additional countries, including Malaysia, Singapore and Thailand. This is part of an effort to restrict access to advanced chips even when Chinese companies use them through data centers outside China, rather than shipping them directly to the country. The coverage did not name the other additional countries. It reported that the Commerce Department was consulting with other government agencies before finalizing the rule. An announcement during November remains a possibility cited by the report, not a confirmed date.
The report linked the proposal to overseas computing arrangements made by major Chinese companies. It said Tencent, Alibaba and ByteDance had signed agreements for data centers outside China that provide access to advanced Nvidia chips for training artificial intelligence models. These arrangements put remote access at the center of the proposed rule, as they enable the use of computing capacity located outside China. The report added that the agreements were facing increased scrutiny abroad and within China. This comes as Beijing pushes for greater use of domestic chips, according to the same coverage.
The rule is being discussed as part of a broader debate in Washington over blocking chip access to China. Investing.com cited Axios as reporting that President Donald Trump had pushed for tighter export controls to prevent chip smuggling, while Commerce Secretary Howard Lutnick opposed the measure. According to the coverage, the Commerce Department was consulting with other government agencies on the rule covering access through data centers before finalizing its language. The debate combines efforts to prevent direct smuggling with restrictions on remote access from facilities outside China. The information in the coverage does not detail the enforcement mechanism or potential exemptions.
The market is awaiting earnings announcements from both companies in the days following the November 11 session. Alibaba said it would release results for the quarter ended September 30, 2026, before the U.S. market opens on November 19, with a call to discuss them the same day. Tencent’s investor relations calendar lists its third-quarter 2026 results announcement for November 18, at 20:00 Hong Kong time and 15:00 Eastern time. The upcoming dates will allow investors to follow what the companies report about their businesses, while the final language of the U.S. rule had not yet been announced. Investing.com’s report cited November as a possible month for the rule’s announcement, as government consultations continued.