NVIDIA Corp. (NASDAQ:NVDA) stock traded down nearly 5% on Tuesday afternoon following news the U.S. is implementing new restrictions on artificial intelligence exports to China.

Under older restrictions, Nvidia was allowed to export slowed-down versions of its H800 and A800 chips to China, but now the company will no longer be able to sell them to China. 

Chip Wars: The regulations are part of the Biden administration’s efforts to slow down China’s development of artificial intelligence technologies that U.S. officials worry China will use for military purposes.

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The Biden administration maintained the Trump administration’s tariffs and other tough measures on China, and part of Biden’s economic policy has been to invest in infrastructure in the U.S. in an effort to compete with China.

Last year, then Speaker of the House Nancy Pelosi visited Taiwan to demonstrate the U.S.’s support for the island, upsetting many top Chinese officials. As a result, China withdrew from climate change talks with the U.S.

The latest restriction on AI chip exports likely signaled that trade relations between the U.S. and China aren’t getting better anytime soon.

The KraneShares CSI China Internet ETF (NYSE:KWEB), which tracks many large Chinese internet and technology companies, is down nearly 15% YTD. 

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