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09 Sep 2026
Nvidia chip export loophole

Chinese Firms Found a Way Around the Chip Ban. Washington Wants It Closed

Categories Tech

The Nvidia chip export loophole lets Chinese AI firms access advanced computing power that direct export rules were meant to block. They do it by renting time on Southeast Asian data centers built with Nvidia’s top-tier chips. U.S. Commerce Department officials are now drafting a rule to close it. A draft is expected to circulate among trade groups as early as this month.

How the Nvidia chip export loophole works

Washington bars Nvidia’s most powerful chips, including the H100 and A100 series, from direct sale to China under a presumption-of-denial policy. A Chinese firm blocked from buying those chips outright has another option, though. It can instead rent remote cloud access to servers running on them, as long as those servers sit in a country the direct export ban does not cover.

Nvidia chip export loophole
Chinese Firms Found a Way Around the Chip Ban. Washington Wa

Data centers in Thailand and Singapore have become focal points for this workaround, according to CNBC. Chinese AI firms lease computing time on Nvidia-powered servers there, sidestepping the restriction that applies to physical chip shipments into China itself.

The legislative gap Washington is racing to close

A bill called the Remote Access Security Act, known as RASA, would extend U.S. export control authority to cover this kind of remote cloud access. The House passed it by a lopsided 369-to-22 vote in January, but the Senate has not yet taken it up, according to reporting reviewed by Asia Times.

Export-control lawyers say the Bureau of Industry and Security currently lacks clear statutory authority to police remote chip access until RASA becomes law. That legal gap is what has allowed the Southeast Asia workaround, sometimes referred to as the Aivres dispute, to persist.

Commerce Department’s next move

In the meantime, Commerce is drafting its own rule targeting data centers specifically in Thailand and Singapore, aiming to restrict Chinese firms’ ability to rent Nvidia-powered compute there even without new legislation. The rule could be shared with industry trade groups as soon as September, ahead of any Senate action on RASA.

The timing places the issue directly in the path of the upcoming Trump-Xi summit in Washington later this month, where the two leaders are expected to discuss whether the current arrangement continues.

Where the loophole debate heads next

Watch for two separate tracks: whether the Senate moves on RASA, and whether Commerce’s draft rule advances on its own regulatory timeline. The two could arrive in either order, and industry groups are expected to push back on any rule that raises compliance costs for cloud providers operating legally outside China.

Nvidia itself has largely stayed out of the political fight publicly, while continuing to sell chips into markets where sales remain legal under current rules.

Why enforcement has been so difficult

Export control law was built around physical shipments. A chip that never crosses a border, but is instead accessed remotely over the internet, does not fit neatly into rules written for cargo manifests and customs declarations. That gap is exactly what the Southeast Asia workaround exploits.

Data center operators in Thailand and Singapore are not necessarily breaking any law in their own jurisdictions. They lease server time to whoever pays for it, much like cloud providers everywhere. The legal question is whether the end user’s location and nationality should trigger U.S. export restrictions on that access.

Congress created the current gap somewhat inadvertently. Commerce rescinded a Biden-era know-your-customer requirement for cloud access, and export lawyers say that decision opened the door the current rule is now trying to close. Untangling that history has slowed the drafting process.

Enforcement also runs into a practical limit. Even if the U.S. tightens rules on Thailand and Singapore specifically, similar data centers could emerge in other countries not yet covered. Some analysts expect this to become a recurring pattern rather than a one-time fix.

Frequently asked questions about the chip loophole

What is the Nvidia chip export loophole?
It refers to Chinese AI firms renting remote access to Nvidia-powered servers in countries like Thailand and Singapore, avoiding the direct export ban on shipping chips into China.

What is the Remote Access Security Act?
RASA is a bill that would extend U.S. export control authority to cover remote cloud-based access to restricted chips. It passed the House 369-22 in January but awaits Senate action.

Can the Commerce Department act without RASA passing?
Commerce is drafting its own rule targeting Southeast Asian data centers, though export-control lawyers say broader enforcement authority depends on RASA becoming law.

Which countries are involved in the loophole?
Thailand and Singapore have been identified as locations where data centers provide Chinese firms with access to Nvidia-powered computing.

Will this come up at the Trump-Xi summit?
Yes. The two leaders are expected to discuss whether the current cloud-access arrangement continues when they meet in Washington on September 24.

For related coverage, see our reporting on the global memory chip shortage and the Anthropic-Nvidia compute deal.

Sources

09 Sep 2026
Bank of England September vote

The Bank of England’s Next Vote Could Go Either Way. Here’s the Math

Categories Business

The next Bank of England September vote lands on Thursday, September 17, 2026, at noon London time. It follows a divided vote in July, when three of nine Monetary Policy Committee members wanted a rise to 4.00% while the majority held Bank Rate at 3.75%. That split leaves the September outcome unusually hard to call.

Why the Bank of England September vote is finely balanced

Headline UK inflation has risen from 2.6% to 2.9% since the July meeting, according to the Bank’s own July 2026 monetary policy summary. The Bank’s central projection at that meeting showed CPI inflation peaking around 3.2% in the fourth quarter of 2026, well above the 2% target.

Bank of England September vote
The Bank of England's Next Vote Could Go Either Way. Here's

Crucially, August inflation figures land at 7am on Wednesday, September 16, the morning before the Committee votes. That means members will have two additional Consumer Prices Index readings and two more labour market releases in hand compared with the July meeting, giving fresher data a real chance to move the outcome.

What markets are pricing in

Market-implied probability estimates have varied notably in recent days. Some readings put the probability of no change as high as 90%, while earlier estimates put it closer to 72%, according to analysis from BritSavvy. A market-implied move of roughly 7 basis points above the current 3.75% rate suggests traders see some, but not overwhelming, chance of a hike.

The spread between those estimates itself signals genuine uncertainty. Unlike meetings where a hold or hike is treated as close to certain going in, this decision remains open heading into the final data releases.

The case for holding versus hiking

Policymakers favoring a hold point to the risk that raising rates too aggressively could choke off growth just as inflation pressures show signs of moderating elsewhere in the economy. Those favoring a rise argue that inflation running nearly a full point above target, and rising rather than falling, justifies tighter policy now rather than waiting.

The three dissenting votes in July signal that at least a meaningful minority of the Committee already leans toward tightening. Whether that minority grows depends heavily on what the August inflation print shows.

What to watch before the September vote

The August CPI release on September 16 is the single data point most likely to shift expectations. A reading meaningfully above 2.9% would strengthen the case for a hike. A reading that holds steady or eases would support the majority’s preference to hold.

Labour market data due before the meeting will also factor into the Committee’s thinking. Wage pressure remains a key input into how persistent inflation is likely to prove over the coming year.

Mortgage holders and homebuyers have a direct stake in the outcome too. A hold keeps borrowing costs steady for now, while a surprise hike would raise monthly payments on new and variable-rate mortgages almost immediately.

How this compares with the Fed and ECB

The Bank of England is not alone in facing a close call this month. The U.S. Federal Reserve left rates unchanged for a fifth straight meeting in July, though three officials dissented in favor of a hike. Fed Chair Kevin Warsh flagged persistent underlying inflation at the Jackson Hole symposium in August.

The European Central Bank, by contrast, has held its key rates steady since July with less internal division. Eurosystem staff project headline inflation averaging 3.0% in 2026, broadly similar to the Bank of England’s own outlook.

What sets the UK apart is the size of the dissent. A 6-3 vote signals real disagreement within the Committee, more pronounced than the splits currently visible at the Fed or ECB. That makes the Bank of England September vote this month one of the more closely watched among major central banks.

Currency traders have taken note. Sterling has shown more sensitivity to incoming UK data releases in recent weeks than the dollar or euro have to their own domestic releases, reflecting the market’s uncertainty about which way the September vote will go.

Readers’ questions on the rate decision

When is the next Bank of England September vote?
The Monetary Policy Committee announces its decision on Thursday, September 17, 2026, at noon London time.

What was the outcome of the July meeting?
The Bank held Bank Rate at 3.75% in a divided 6-3 vote, with three members preferring a rise to 4.00%.

What is UK inflation running at now?
Headline CPI inflation has risen from 2.6% to 2.9% since the July decision, with the Bank projecting a peak near 3.2% in Q4 2026.

What data comes out before the decision?
August inflation figures are released at 7am on September 16, the morning before the vote, along with additional labour market data.

Are markets expecting a rate hike?
Estimates vary. Some market-implied probabilities put the chance of no change as high as 90%, while other readings suggest a closer contest.

For related central bank coverage, see our reporting on the Bank of Canada’s rate hold and the latest jobs report and rate-hike odds.

Sources

09 Sep 2026
PayTabs Amazon Payment Services

This $100M Deal Just Created the Biggest Payments Firm in the Middle East

Categories Business

The PayTabs Amazon Payment Services deal, announced this week, will see the Saudi-founded fintech acquire Amazon’s payments business across the Middle East and North Africa in a transaction valued at more than $100 million. The combined company is projected to process over SAR150 billion annually once the deal closes, making it the largest payments infrastructure provider in the region.

What the PayTabs Amazon Payment Services deal includes

Amazon Payment Services, formerly known as PayFort, operates across nine MENA markets and serves more than 3,500 businesses. It supports major global card networks alongside regional payment methods including Mada, Knet and Meeza, according to Fintech Global. Both companies say continuity of service will be a priority during the integration.

PayTabs Amazon Payment Services
This $100M Deal Just Created the Biggest Payments Firm in th

Neither company has disclosed the exact purchase price beyond the more-than-$100-million figure both confirmed. Both boards approved the transaction, though neither side has announced a specific closing date yet.

Why PayTabs wanted this acquisition

This is not PayTabs’ first move to consolidate payments infrastructure in the region. The company purchased the UAE contactless payments firm TAPn’GO in April 2026, and acquired the Turkish social-commerce platform Paymes back in 2022. The Amazon Payment Services deal extends that pattern into a much larger acquisition, according to Payment Expert.

Scale matters in payments infrastructure because processing volume drives negotiating leverage with card networks and banks. Absorbing Amazon’s MENA payments arm gives PayTabs both a larger merchant base and deeper integration with regional payment rails in a single move.

What it means for merchants using either platform

Businesses currently using Amazon Payment Services should expect a transition period as accounts, integrations and support move under PayTabs. Both companies say continuity is a priority, though they have not yet published the practical details of migration.

For merchants weighing payment providers in the region, the deal reduces the number of large independent players, concentrating more processing volume under fewer companies. That trend mirrors consolidation seen in payments markets elsewhere over the past several years.

What the deal still needs to close

Regulatory approvals across the nine markets Amazon Payment Services operates in will likely determine the actual closing timeline. Payments licensing in the Gulf region typically requires central bank sign-off. That process can extend well beyond the announcement-to-close window seen in less regulated sectors.

Watch for formal integration announcements from PayTabs in the coming months. Regulatory filings in individual MENA markets would also help confirm a firm closing date.

Neither company has said whether branding will change once the transition completes, or whether Amazon Payment Services will be folded fully into the PayTabs name. Merchants will likely get more clarity on that question once regulators sign off in the largest markets involved.

How the region’s fintech map is shifting

The MENA payments sector has consolidated rapidly over the past two years. Large regional players have absorbed smaller processors as banks push for fewer, deeper technology partnerships. PayTabs’ latest move fits that pattern, but at a scale larger than its previous acquisitions.

Saudi Arabia’s push toward a cashless economy under its national development plans has fueled much of this activity. Government-backed initiatives have encouraged digital payment adoption across retail, government services and e-commerce. PayTabs, founded in Saudi Arabia, sits close to that policy push.

Amazon’s decision to exit direct ownership of its MENA payments arm also fits a broader pattern. Large global platforms have increasingly preferred to license or outsource regional payment rails rather than operate them directly, especially in markets with complex local licensing regimes.

For competitors, the deal raises the bar. A combined PayTabs-Amazon Payment Services entity processing more than SAR150 billion annually gives it negotiating leverage smaller rivals cannot easily match. Some analysts expect further consolidation among mid-sized regional processors within the next year.

Central banks across the Gulf have generally supported consolidation that strengthens payment security and reliability, provided it does not concentrate too much market share in a single provider. Regulators will likely scrutinize that balance closely as the deal moves toward formal approval.

Frequently asked questions about the PayTabs deal

How much is the PayTabs Amazon Payment Services deal worth?
The deal is valued at more than $100 million, though neither company has publicly disclosed the exact purchase price.

Which markets does Amazon Payment Services operate in?
It operates across nine MENA markets, serving more than 3,500 businesses with support for global card networks and regional payment methods.

Has PayTabs made similar acquisitions before?
Yes. PayTabs acquired UAE contactless payments firm TAPn’GO in April 2026 and Turkish platform Paymes in 2022.

Will merchants using Amazon Payment Services be affected?
Accounts and integrations are expected to transition to PayTabs over time, with both companies stating continuity of service is a priority.

When will the deal officially close?
Neither company has announced a specific closing date publicly. Regulatory approval across multiple MENA markets will likely determine the final timeline.

For more on major technology and payments consolidation this year, see our coverage of the Nvidia-Hugging Face acquisition and Palo Alto Networks’ acquisition spree.

Sources

09 Sep 2026
Trump Xi Washington summit

Trump Will Host Xi in Washington This Month. Here’s What’s on the Table

Categories Business, World

The Trump Xi Washington summit is scheduled for September 24, 2026, when President Trump will host Chinese President Xi Jinping at the White House. The meeting aims to extend the trade truce the two sides reached in October 2025, which halted a rapid escalation in tariffs between the world’s two largest economies.

Why the Trump Xi Washington summit matters

A previous summit in May 2026, held in Beijing, ended amicably and is widely seen as the template for this month’s meeting. Trade officials on both sides have signaled they expect a similar outcome this time, extending the truce rather than renegotiating it from scratch, according to reporting tracked by the Foundation for Defense of Democracies.

Trump Xi Washington summit
Trump Will Host Xi in Washington This Month. Here's What's o

Markets have generally read the upcoming meeting as reducing near-term tariff risk. A truce extension would avoid a return to the sharp escalation both economies experienced in 2025. Investors in export-heavy sectors are watching the date closely. So are shipping and logistics firms exposed to trans-Pacific trade volumes.

The chip access question shadowing the summit

One issue expected to come up is whether Washington will keep allowing data centers in Southeast Asia to give Chinese AI firms cloud-based access to computing power built on Nvidia’s most advanced chips. That arrangement, sometimes called the cloud loophole, lets a Chinese firm barred from buying restricted chips directly instead rent computing time from an overseas data center running on them.

The U.S. Commerce Department is drafting a rule to close the loophole by targeting data centers in Thailand and Singapore specifically, according to Asia Times. Whether that rule advances before or after the summit could shape how the meeting’s tone plays out.

What each side wants from the meeting

Washington’s stated priority is preserving the truce while pressing for stronger enforcement against the chip-access workaround. Beijing has consistently pushed back against tightening export controls, arguing the restrictions unfairly target Chinese technology development.

Both governments have incentives to avoid a public breakdown. A return to rapid tariff escalation would raise costs across supply chains that both countries depend on, from consumer electronics to agricultural exports.

Ahead of the Washington summit

Expect pre-summit statements from both governments in the two weeks leading up to September 24. Possible market moves tied to leaked details of the agenda are likely too. Trade officials from both delegations are expected to hold preparatory talks before the leaders meet directly.

If the meeting proceeds as the May 2026 Beijing summit did, expect a joint statement extending the truce with limited new commitments. A comprehensive new trade agreement remains unlikely at this stage.

Diplomatic staff on both sides have described the preparatory mood as businesslike rather than tense. That tone, if it holds, would mark a contrast with earlier points in the broader U.S.-China trade relationship over the past several years.

What business groups are watching

Trade associations on both sides of the Pacific have quietly lobbied for a truce extension. Manufacturers that depend on Chinese components want tariff certainty heading into next year’s planning cycles. Agricultural exporters in the U.S. want continued access to Chinese buyers who resumed purchases after the 2025 truce.

Semiconductor firms sit in a more complicated position. Nvidia and its peers benefit from stable trade relations generally, yet also face pressure from Washington to support tighter export enforcement. That tension is likely to shape how forcefully U.S. negotiators push the chip-access issue at the summit itself.

Currency markets offer another signal worth watching. The yuan has traded in a relatively narrow band since the October 2025 truce took hold. A summit that clearly extends the truce would likely reinforce that stability. A breakdown, by contrast, could reintroduce volatility investors had mostly priced out.

Analysts covering both economies caution against expecting sweeping new commitments. Truce extensions in trade diplomacy tend to preserve the status quo rather than resolve underlying disputes. The chip-access question, in particular, may simply be deferred to working-level talks after the leaders meet.

Questions readers are asking about the summit

When is the Trump Xi Washington summit?
The meeting is scheduled for September 24, 2026, at the White House in Washington, D.C.

What is the summit expected to accomplish?
Officials on both sides expect it to extend the trade truce reached in October 2025, similar to the outcome of the May 2026 Beijing summit.

Will the chip export loophole be discussed?
It is expected to come up, specifically whether Chinese firms can keep accessing Nvidia-powered computing through data centers in Southeast Asia.

Has a summit between the two leaders happened before this year?
Yes. Trump and Xi met in Beijing in May 2026, and that meeting is seen as a model for how this one may unfold.

Could the summit fail to extend the truce?
It is possible, though both governments have strong incentives to avoid renewed tariff escalation, making an extension the more likely outcome.

For related coverage, see our reporting on the Anthropic-Nvidia compute deal and Xi Jinping’s recent visit to Egypt.

Sources

09 Sep 2026
Israeli settlement goods ban

UK, France and Canada Just Banned These Goods. Israel Is Furious

Categories World

The Israeli settlement goods ban announced this week blocks imports from Israeli settlements in the occupied West Bank. Britain, France and Canada unveiled the coordinated measure on September 8 and 9, 2026, citing concern over actions they say threaten the prospect of a two-state solution. A wider group of 12 countries has signaled it may follow with similar restrictions.

What the Israeli settlement goods ban covers

The three countries will block imports of goods produced in Israeli settlements in the West Bank, according to reporting from UPI. The UK went further, formally declaring Israel’s occupation of the Palestinian territories unlawful. London also announced sanctions on five settlers accused of carrying out or supporting violence against Palestinians, along with sanctions on companies tied to settlement expansion.

Israeli settlement goods ban
UK, France and Canada Just Banned These Goods. Israel Is Fur

A broader coalition of 12 countries said they intend to act too. That group includes Canada, Denmark, Finland, France, Iceland, Ireland, Norway, Poland, Portugal, Spain, Sweden and the UK. Some will introduce national restrictions. Others will support European-level measures or simply consider trade steps targeting settlements, according to ABC News Australia.

Why these governments moved now

The announcement came amid mounting international anger at the government of Prime Minister Benjamin Netanyahu over settlement policy. Officials in London, Paris and Ottawa framed the measures as a direct response to actions they say undermine any future Palestinian state. The step marks one of the most coordinated Western trade actions against settlement goods to date.

Trade volumes tied to settlement production are relatively small in the context of overall Israeli exports, so the economic effect is likely to be limited. The diplomatic signal is the larger part of the story: three major Western economies acting in concert, with a further nine considering similar steps.

Israel’s retaliation

Israel condemned the measures and announced retaliatory steps of its own, including the closure of the British consulate in East Jerusalem. Israeli Foreign Minister Gideon Saar accused Britain of interfering in Israel’s internal affairs. Israeli officials have not indicated any change to settlement policy in response to the announcement.

The reaction adds another point of friction between Israel and several of its traditional Western allies. It comes at a moment when the broader Middle East already faces significant strain from other ongoing conflicts.

What comes next for the settlement ban

Implementation details, including which specific goods and producers fall under the restrictions, are expected to be published by each government separately in the coming weeks. Whether the remaining nine countries in the 12-country coalition follow through with binding national measures, rather than statements of intent, will determine how far the policy actually extends.

Watch for a possible European Union-level discussion, since several EU member states are among the 12 countries named. A coordinated EU measure would carry more economic weight than individual national bans.

How trade experts read the move

Trade analysts describe the ban as more symbolic than economically painful for Israel in the short term. Settlement goods make up a small fraction of the country’s total exports. The bigger question, analysts say, is whether the coalition of 12 countries turns statements of intent into binding law.

Some economists point to a slow-burn effect instead. If the European Union eventually adopts a bloc-wide restriction, the impact would grow considerably. Several of the 12 countries named this week are EU members, which gives that scenario real weight.

Israeli exporters affected by the ban have not issued a unified public response yet. Trade groups in the settlements themselves have called the move discriminatory and warned of job losses among workers, some of whom are Palestinian, employed in settlement-based industries.

Diplomats in the region also note a secondary effect. The measure gives European governments a concrete policy tool short of full sanctions, which some had been calling for amid the wider Middle East conflict. It sits in a middle ground between statements of concern and harder economic penalties.

Common questions about the settlement goods ban

Which countries have banned imports from Israeli settlements?
Britain, France and Canada announced the ban this week. A wider group of 12 countries, including Denmark, Finland, Iceland, Ireland, Norway, Poland, Portugal, Spain and Sweden, has signaled it may introduce similar measures.

Does the Israeli settlement goods ban apply to all Israeli exports?
No. It applies specifically to goods produced within Israeli settlements in the occupied West Bank, not to Israel’s exports generally.

How has Israel responded?
Israel condemned the measures and closed the British consulate in East Jerusalem. Foreign Minister Gideon Saar accused Britain of interfering in Israel’s affairs.

Did the UK take any additional steps beyond the import ban?
Yes. The UK formally declared the occupation unlawful and imposed sanctions on five settlers and several companies tied to settlement expansion.

Is this expected to significantly affect Israel’s economy?
Trade tied directly to settlement production is a small share of Israel’s overall exports, so the immediate economic impact is likely limited compared with the diplomatic signal it sends.

For more on the region’s escalating tensions, see our coverage of Israeli strikes in southern Lebanon and the EU’s extended Russia sanctions.

Sources

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