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Shares of major Chinese chipmaking firms rose sharply in Shanghai and Hong Kong trade on Friday after Bloomberg reported the U.S. was considering less strict export restrictions on Beijing than feared.

Semiconductor Manufacturing International Corp – the country’s biggest chipmaker by volume- rose over 4% in Hong Kong trade, while HG Semiconductor Ltd, Hua Hong Semiconductor Ltd and Shanghai Fudan Microelectronics Group Co Ltd rose between 3% and 4.5%.

Sanhe Tongfei Refrigeration Co Ltd and Shanghai Zhangjiang Hi-Tech Park Development Co Ltd rose between 1% and 2% in Shanghai trade.

Gains in tech underpinned broader Chinese markets, with the Shanghai Shenzhen CSI 300, Shanghai Composite and Hang Seng rising between 1% and 2%.

Bloomberg reported this week that the Biden administration was preparing more restrictions on sales of artificial intelligence technology and semiconductor equipment to China, in order to stem Beijing’s efforts in the fast-growing AI industry.

But the proposed measures are expected to be less stringent than those considered earlier, offering some relief to Chinese markets. Specifically, the U.S. will now reportedly add fewer Chinese companies to an export restriction list than previously planned.

The U.S. had imposed strict export restrictions on AI technology to China in 2023, which prevents chipmakers such as NVIDIA Corporation from selling its most advanced AI chips to the country.

Nvidia and other chipmakers have warned that more export restrictions could potentially dent sales.

U.S.-China trade ties are expected to be further strained as Donald Trump takes office in January. Trump has threatened to impose sweeping trade tariffs against the country.