Investigation details how billions' worth of export-restricted Nvidia AI chips are sold to China — report details how Chinese firms skirt Trump's regulations
American nonprofit C4ADS, a monitoring organization funded mostly by the U.S. government, produced a report shedding light on the many ways that American AI accelerators reach China.
A C4ADS report examines the various methods used to circumvent U.S. restrictions on exporting AI chips to China. Though the U.S. prohibits the sale of advanced AI chips like the H100, A100, and Blackwell-family chips to China, Chinese authorities often turn a blind eye to illegal imports. C4ADS identifies three major methods for smuggling these chips into China: direct purchases by research institutions, drop-shipping through Southeast Asian countries, and purchases via a complex network of shell companies.
Only a fraction of the illicit chips are accounted for in the report, suggesting the actual amount could be much higher. The largest single importer is a firm called Megaspeed International, but its true ownership remains unclear. The report recommends that the U.S. Bureau of Industry and Security be given more resources to verify where the chips end up and who their end users are.
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