SITUATION EXPLAINED: The Trump administration is closing the loophole that lets Chinese labs rent US chips. • A small group inside Commerce is building a slimmed-down replacement for the Biden-era AI Diffusion Rule, which the administration scrapped in 2025 • The target is Chinese AI firms accessing advanced chips remotely through data centers abroad, in countries including Thailand and Singapore • The current regime is upside down: the US now permits H200 sales to China while Beijing forbids…