Phantom Buyers: Commerce Department Faces Scrutiny Over Nvidia Chip Export Approvals to China
An investigation uncovered that two Chinese firms granted permission to purchase restricted Nvidia H200 processors operate from vacant addresses, raising questions about whether U.S. regulators are adequately vetting these transactions.
Scrutiny is mounting over whether the U.S. Department of Commerce is adequately reviewing export licenses for advanced semiconductors. A recent investigation discovered that two Chinese companies authorized to acquire Nvidia H200 chips maintain offices at addresses that turned out to be empty, with building staff expressing no familiarity with the firms, according to reporting by The New York Times.
The situation extends beyond mere vacant office space. Leadership at these companies frequently maintains ties to other organizations that the United States has previously sanctioned for supplying cutting-edge technology to China's military apparatus, the investigation found.
The discovery has intensified worries that the Commerce Department is approving GPU export permits without conducting thorough vetting to identify potential connections to Beijing. "I have a ton of concerns that neither the Commerce Department or Nvidia is doing the due diligence needed to ensure that the licensing terms are being followed," said Liza Tobin, who previously served as China director for the White House National Security Council, in comments to the publication.