AsianFin -- The European Union is set to limit the flow of artificial intelligence (AI) chips to China as part of its trade agreement with the United States, according to the South China Morning Post (SCMP) on Thursday.

Chinese officials have previously cautioned other countries against striking deals with the US that could undermine China’s interests and have vowed to protect them firmly.

The EU and U.S. jointly issued a statement on Thursday confirming that the EU will accept a 15% tariff on 70% of its exports to the US, as agreed in July. While China is not explicitly mentioned in the 19-point joint statement, the SCMP noted veiled references throughout the document.

The report highlighted that the EU plans to purchase $40 billion worth of AI chips from the US and will “adopt” US security standards to “avoid technology leakage to destinations of concern,” a phrase commonly understood to refer to China.