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NYT investigation: several Chinese companies approved to handle Nvidia H200 are suspected shell entities

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According to a New York Times investigation, the U.S. Department of Commerce this year approved about two dozen Chinese companies to purchase Nvidia H200 chips or assemble them into AI servers, and those approved include Baidu, BYD, and Tesla Shanghai. The investigation states that one of them, New Matrix, has a registered Beijing address that is a vacant office building, and the property management has no record of the company; its owner is connected to Wise Road Capital, a private equity fund added to the U.S. Entity List in 2024. Another approved company, Maginfra, likewise has a registered address where no one works, and analysts believe it may be a front for Inspur Group, which was added to the Entity List for supplying the Chinese military. Other approved companies such as Zhejiang Yindun Cloud Technology are linked through equity relationships to military suppliers. The report quotes Liza Tobin, former director for China at the White House National Security Council, as saying she worries that the U.S. Department of Commerce and Nvidia did not conduct necessary due diligence. The Bureau of Industry and Security says all applications underwent strict national security review.

Generated by AI from reports · Updated 5 days ago

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Nov 9
Nov 8
  1. Tom's Hardware
    New York Times investigation: offices of two Chinese firms approved to buy restricted Nvidia AI chips are vacant and linked to sanctioned military suppliers

    According to a New York Times investigation, the addresses of two Chinese companies approved to purchase Nvidia H200 chips point to vacant offices, and front desk staff in the buildings do not recognize the companies. The investigation also says that executives of these companies are often associated with enterprises sanctioned by the United States for providing advanced technology to the Chinese military. Liza Tobin, former China director at the White House National Security Council, told the New York Times that she worries neither the U.S. Department of Commerce nor Nvidia has done the necessary due diligence to ensure license terms are complied with, and said the Commerce Department may simply be routinely approving GPU export license applications without reviewing each one for possible ties to Beijing.

  2. The Business Times
    Empty offices, ties to blacklisted companies: a look into the Chinese companies cleared by the US to handle Nvidia chips

    A New York Times investigation found that several Chinese companies approved by the US Department of Commerce to handle Nvidia H200 chips have vacant registered addresses and are linked to entities placed on the US Entity List or to military-related companies. Among them, New Matrix was approved earlier in 2026 to assemble H200s into AI servers, but no one was working at its registered Beijing address; its owner is linked to Wise Road, a private equity firm added to the Entity List in 2024, and analysts believe it may be a front for an affiliate of the latter. Maginfra, approved earlier, also has a vacant registered address and is believed to be linked to the already-listed Inspur. Other approved companies, such as Zhejiang Yindun Cloud Technology and Shanghai Jiatang, are connected through equity relationships to military suppliers.

  3. worldjournal.comSelected
    Nvidia chip sales to China are fraught with doubts; a New York Times on-site investigation found that Chinese companies approved by the U.S. to handle H200 chips appear to be shell entities.

    A New York Times on-site investigation found that several Chinese companies approved by the U.S. Department of Commerce to handle H200 chips have registered addresses that appear to be shell entities, and some of the companies are linked to firms on the U.S. trade blacklist or to Chinese military contractors, raising questions about whether U.S. national security review of chip sales to China is adequate. This year the Commerce Department has approved about 24 Chinese companies to buy H200 chips or assemble them into AI servers, including Baidu, BYD and Tesla Shanghai. New Matrix, established only 17 months ago, has a registered address that is an empty premises with no property records; its shareholders are linked to Zhipu Capital, which is on the U.S. blacklist, and analysts believe it may be a front company; Maginfra is also believed by analysts to possibly originate from Inspur Group, which was placed on the U.S. Entity List for cooperating with the Chinese military. The Times also cited a high-level Trump administration memorandum saying that Singapore-based Megaspeed's Chinese national executive Huang Le was identified by U.S. intelligence officials as a Chinese intelligence officer, whose tasks included gathering intelligence on Jensen Huang and possibly attempting to influence Nvidia's stance on chip export policy; the Financial Times reported that Jensen Huang had associated with Huang Le.

  4. Crypto News
    The Beijing address registered by Nvidia H200 assembler New Matrix is an empty building

    According to The New York Times, the Chinese company New Matrix, which earlier this year was approved by the Trump administration to assemble Nvidia H200 chips into AI computers, has a registered Beijing address that is an empty building, located in a newly built industrial park on the northwestern outskirts of Beijing. After the policy shift on December 8, 2025, H200s were legally sold to China on the condition that 25% of revenue goes to the US side, and from mid-January 2026 the US Department of Commerce changed to case-by-case review of export licenses. The report said that in January 2026 Beijing conditionally approved about 400,000 H200s for use by companies including Alibaba, ByteDance and Tencent, and that as of early November 2026 about 600,000 H200s were reportedly backlogged in Hong Kong awaiting import approval. In the July 2026 quarter, H200 sales in China accounted for less than 1% of Nvidia's data center revenue.

Nov 7
  1. The Verge AI
    U.S. allows Nvidia to sell AI chips to a Chinese company with vacant offices

    According to The New York Times, the U.S. government approved Nvidia to sell H200 AI chips to companies linked to Chinese blacklisted entities, and one of the approved companies, New Matrix, has vacant office premises. The newspaper reported that New Matrix was founded 17 months ago, the company does not appear in the park's business directory at its registered address, both the property front desk and the manager said they have no record of the company, and there is little information about it online. Available information shows that its owner is linked to a Chinese private equity fund that has been on the U.S. government blacklist since 2024. The New York Times reported that companies linked to entities subject to national-security-related trade restrictions being allowed to buy Nvidia chips is not an isolated oversight but a recurring phenomenon. During the Biden administration, Nvidia was restricted from selling chips to China; the Trump administration relaxed the restrictions, after Nvidia agreed to pay 15% of all sales to the government; CEO Jensen Huang also conducted intensive lobbying and was reportedly a target of Chinese Ministry of State Security espionage.

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