The autonomous-driving technology firm, which debuted on the Nasdaq yesterday, operates a fleet of more than 250 robotaxis and over 190 robotrucks, mostly in Chinese cities like Beijing and Shenzhen.

As with other Chinese electric vehicle (EV) and tech companies, Pony AI is caught between the geopolitical spat between China and the US.

Pony AI’s shares fell 7.7% at the close of the first day of trading.

Just hours after the market closed, Bloomberg News reported that the Biden administration is weighing additional curbs on sales of semiconductor equipment and AI memory chips to China that would escalate the US crackdown on Beijing’s tech ambitions.

“For us, it’s nothing new. We have dealt with this for quite some time already,” Peng said in an interview with Bloomberg Television today, when asked about the potential export restrictions on chips.

“Our strategy was and remains to be, we will diversify our supply chain.

“As more and more manufacturing of chips are coming out of China or rest of the world, we’ll try to have more diversified supply chain to further de-risk from geopolitical tensions,” Peng said.

The company would also focus its operations on international markets outside of the US, such as South Korea, Singapore and the Middle East, Peng added.