Alibaba Shares Fall to $101.52 as U.S. Moves to Block China’s Remote Access to Chips

Key Facts

U.S.-listed Alibaba shares closed at $101.52 on November 11, down from $102.72 in the previous session, while Tencent shares fell to $51.36 from $52.71. The two stocks closed on the day Investing.com covered a report it attributed to The Information about a U.S. rule in preparation to regulate Chinese AI companies’ access to advanced chips. According to the report, the U.S. Commerce Department is preparing to finalize a measure that would prevent those companies from remotely accessing chips through data centers in other countries. That could leave companies using advanced computing at centers outside China facing tighter restrictions on how they obtain training capacity. The proposed rule remains under preparation and consultation, while both shares fell during the session in which the news emerged.

Investing.com cited The Information as saying the measure targets remote access and chip smuggling into China. Its proposed scope means the restrictions would extend beyond shipping chips directly to China to include their use through data centers located in other countries. The rule could be announced during November, according to the report, but the timing remains a possibility rather than a confirmed date. Before it is finalized, the Commerce Department has been consulting with other government agencies on its details. The move from proposal to enforceable controls therefore depends on the conclusion of those consultations and the drafting of the final rule.

The expansion of controls could cover 7 additional countries, including Malaysia, Singapore and Thailand, according to the report. The proposed step builds on existing semiconductor controls administered by the U.S. Bureau of Industry and Security, while widening their geographic scope. The countries named are potential locations for data centers outside China, while the cited information says Chinese companies have signed agreements enabling access to advanced Nvidia chips through overseas facilities. Adding countries would broaden the range of locations potentially subject to the restrictions if the rule is adopted as proposed. The report did not provide details on how the rule would be enforced or on the terms of any potential exemptions.

The report said Tencent, Alibaba and ByteDance had signed agreements for data centers outside China that give them access to advanced Nvidia chips for training AI models. These arrangements make remote access directly relevant to the three companies, as the agreements rely on computing capacity operated at overseas locations. The report said the deals are facing increased scrutiny outside and inside China, as Beijing pushes for greater use of domestic chips. That puts overseas computing arrangements under regulatory scrutiny from multiple sides, while Chinese policy is moving to encourage domestic alternatives. The report did not specify how existing agreements would be affected if the U.S. rule takes effect.

The proposed measure is part of a broader debate in Washington over preventing chips from reaching China. In a separate report published on November 11, Axios reported that President Donald Trump had pushed for tighter chip export controls to China to prevent smuggling, while Commerce Secretary Howard Lutnick opposed the measure. The report points to debate within the administration over the direction of policy, as the Commerce Department was consulting with other government agencies on the rule covering access through data centers. Official guidance from the Bureau of Industry and Security says the licensing requirement for advanced computing chips destined for entities headquartered in China or Macau, even when they are outside those regions, dates to a rule introduced on November 17, 2023. In May 2026 guidance, the bureau reaffirmed that the licensing requirement applies to destinations outside the United States. It also said data center operators complying with export rules are not required under that guidance to stop the ongoing use, storage or servicing of advanced chips, until further notice.

Upcoming company results provide a point to watch for what they may reveal about AI and cloud computing businesses amid the regulatory debate. Alibaba announced that results for the quarter ended in September 2026 will be released on November 19. Tencent also listed its third-quarter 2026 results announcement on its investor relations calendar. The dates follow the November 11 session, when both companies’ shares fell, and come before the final form of the proposed U.S. rule is known. The rule could be announced during November, according to the report attributed to The Information, while government consultations were still under way before its adoption.