The US Justice Department has charged two Chinese nationals for allegedly orchestrating a long-running scheme to smuggle Nvidia's restricted H100 and H200 AI chips to China. Prosecutors say the network relied on straw buyers, false paperwork and relabelled hardware to bypass export controls in place since 2023.
The suspects are accused of working with a Hong Kong logistics company and a China-based AI firm, moving mislabeled chips through United States warehouses before preparing them for export. Officials describe the case as part of a wider operation that attempted to ship at least $160 million worth of controlled GPUs overseas.
Another participant in the network pleaded guilty in October after investigators found tens of millions in wire transfers used to fund the operation. Washington continues to tighten export restrictions on advanced semiconductors, even as the Trump administration has recently allowed, as of today, some Nvidia H200 exports to proceed.
Trump in the past (chips won't be exported to China):
"We will protect National Security, create American Jobs, and keep America's lead in AI. NVIDIA's United States Customers are already moving forward with their incredible, highly advanced Blackwell chips, and soon, Rubin, neither of which are part of this deal."
Trump today (finally allows chips to be exported to China):
"I have informed President Xi, of China, that the United States will allow Nvidia to ship its H200 products to approved customers in China, and other Countries, under conditions that allow for continued strong National Security."
"President Xi responded positively! $25% will be paid to the United States of America," Trump added. "This policy will support American Jobs, strengthen U.S. Manufacturing, and benefit American Taxpayers."
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