Trump's Nvidia chip deal with China raises security concerns over approved buyers - report

A New York Times investigation found that the Trump administration approved Chinese companies with ties to US-blacklisted entities and military contractors to handle advanced Nvidia AI chips, raising questions about the effectiveness of Washington's national security screening process.

A New York Times investigation has revealed that the Trump administration approved Chinese companies with ties to US-blacklisted entities and military contractors to purchase or handle advanced Nvidia H200 artificial intelligence chips, raising questions about the effectiveness of Washington's national security screening process. Among the approved firms was New Matrix, a company established just 17 months ago whose registered office in an industrial park outside Beijing appeared vacant when visited by reporters. Chinese corporate records showed New Matrix's owners had connections to Wise Road, a Chinese private equity fund placed on the US Commerce Department's trade blacklist in 2024 for allegedly helping Beijing acquire strategically sensitive semiconductor companies. Analysts told the NYT they believed New Matrix could be a front for companies associated with the blacklisted fund. The Commerce Department has approved approximately two dozen Chinese companies to purchase or handle the processors, including major corporations such as Baidu, BYD, and Tesla Shanghai. Other approved firms identified by the NYT include Maginfra, believed to be associated with Inspur, a Chinese technology company previously placed on the US entity list for its involvement with China's military, and Zhejiang Yindun Cloud Technology, which has connections to a cloud computing provider that has supplied services to military contractors. Nvidia defended its operations in China, arguing that the country's military would have little incentive to depend on American semiconductor technology. The findings add to a continuing debate in Washington over the national security implications of permitting advanced chip exports to China.