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China’s Sneaky $100 Million Nvidia Chip Deal: How Are They Getting Away With It?

Daniel Kim Views  

Nvidia 

Although the United States has strictly limited the export of the latest technology to China, the online media outlet GigaGen reported that over $100 million worth of Nvidia chips have been exported to China.

The U.S. is regulating the export of the latest semiconductors to China. While semiconductor manufacturers are not violating these regulations, the latest semiconductors are reportedly being exported to China. According to The New York Times, the total value of graphics processing unit (GPU) transactions exported to China is $130 million.

This suggests that China is skirting U.S. export restrictions, with analysis indicating that lesser-known Chinese government-related companies are involved in these transactions. For instance, even if Nvidia does not directly sell products to Chinese state-owned enterprises or related companies, it is virtually impossible to fully track where their business partners ultimately deliver the AI chips, implying that the chips could reach Chinese government-related companies.

Another method involves securing chips before a company becomes subject to export regulations. A company linked to the Chinese military, Sugon, has been banned from purchasing NVIDIA chips. However, a former executive of Sugon established a new company, which has become China’s largest AI server manufacturer.

The news site Tom’s Hardware suggested a whitelist system to solve this issue, where only approved buyers could legally procure the chips. However, the industry is actively lobbying against strict regulations on this matter, so the media outlet reported that introducing a whitelist system appears unlikely.

Daniel Kim
content@viewusglobal.com

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  • Georgia C Brown

    Nuke China before they nuke us

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