According to a Reuters report, the United States government has imposed strict export restrictions in an effort to limit China’s access to advanced technologies, especially artificial intelligence chips; But recent reports show that these efforts have faced serious challenges; Because brokers and intermediaries have found different solutions to avoid the imposed restrictions.
The US Department of Commerce recently asked Nvidia to investigate how its products reached China over the past year. In response to this request, Nvidia asked its large distributors such as Super Microcomputer and Dell Technology to conduct intrusive inspections of their customers in Southeast Asia; An area known as the center of smuggling.
Reports suggest that dealers use a variety of methods to hide the origin of smuggled chips. One method is to duplicate and paste the serial numbers of servers that were legitimately purchased from Supermicro. In some cases, smugglers even change the serial numbers in the servers’ operating systems. These measures show the complexity and high level of smuggling networks.
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The smuggling of Nvidia’s chips comes as the United States expanded its ban on the sale of high-end artificial intelligence chips to China last year. However, investigations show that several Chinese universities and research institutes have procured AI chips through unauthorized intermediaries and vendors as early as 2024. This shows that despite America’s efforts, there are still ways to circumvent the sanctions.
The hidden battle in the gray market of chips shows the challenges of enforcing sanctions and controlling the export of sensitive technologies; The complexity of smuggling methods and the existence of intermediary networks have made it difficult for regulatory bodies, and it seems that competition and attempts to circumvent restrictions will continue. This issue not only affects the trade relations between the two countries, but it can have serious consequences for global competition in the field of new technologies.
