Nvidia Blackwell Chips Reach Chinese Buyers Despite US Export Controls

Challenges to U.S. Semiconductor Export Controls

Maintaining export controls on semiconductor chips manufactured within the United States may prove more difficult than anticipated by officials in Washington, D.C.

Reports indicate that Chinese entities are successfully acquiring computing systems equipped with Nvidia’s Blackwell chips via intermediary traders situated in various global locations.

Resale Networks

Specifically, purchasers in Malaysia, Taiwan, and Vietnam are procuring these resources for their own operational needs.

A portion of these acquired chips is then being resold to companies operating within China, according to sources.

Recent Restrictions and Their Impact

Shortly before the conclusion of his term, former President Joe Biden implemented extensive new restrictions on chip exports.

These limitations further restricted the ability of several nations, including China, to import chips designed for AI applications produced in the U.S.

Nvidia publicly stated at the time that these restrictions would potentially “derail” advancements in global innovation.

Industry Response and Chinese Countermeasures

Recently, Microsoft reportedly appealed to President Donald Trump to consider easing these export controls.

This request stems from the desire of major technology companies to access China’s substantial and growing AI market.

Concurrently, China has advised its AI researchers to limit travel to the United States.

Nvidia’s Statement on Diversion

An Nvidia spokesperson offered the following statement when contacted for comment:

“AI datacenters represent incredibly intricate systems. It is not feasible for anonymous traders to procure, deliver, install, utilize, and maintain Blackwell products in countries where authorization is lacking.

Customers require comprehensive systems including software, services, support, and ongoing upgrades – provisions that anonymous traders asserting possession of Blackwell systems cannot fulfill.

We are committed to thoroughly investigating all reports of potential diversion and will take appropriate measures.”

This article has been updated to incorporate a statement from Nvidia.