Two Chinese companies cleared to buy banned Nvidia AI chips have empty offices and unknown addresses — investigation reveals businesses have ties to sanctioned Chinese military suppliers
Two Chinese companies cleared to buy banned Nvidia AI chips have empty offices and unknown addresses — investigation reveals businesses have ties to sanctioned Chinese military suppliers
An investigation has found that addresses for two Chinese companies approved to purchase Nvidia H200 chips led to empty offices, and the receptionists at the buildings were unfamiliar with them. According to The New York Times, these companies didn’t just have empty offices; their executives are often linked to other firms sanctioned by the United States for working with and providing advanced technology to the Chinese military.
This news has revealed concerns that the U.S. Department of Commerce is simply rubber-stamping GPU export license applications instead of scrutinizing each one for potential links 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,” former China director for the White House National Security Council Liza Tobin told the publication.
The New Matrix website also reportedly did not contain any information about its owners or its history, although public company records reveal that it was founded by Li Bin, who, along with two other primary owners, are connected to Wise Road, a Chinese private equity firm sanctioned by the U.S. for helping Beijing acquire sensitive chip technologies. Furthermore, Mr. Li chairs Tsinghua Unigroup, a tech conglomerate partly owned by the Chinese government, and owns New H3C Semiconductor Technologies, which has also been added to the Commerce Department’s Entity List for cooperating with the Chinese military.
Maginfra, on the other hand, is suspected of being linked to Inspur, which Washington has blacklisted since 2023 for supporting the People’s Liberation Army, with both companies sharing personnel, patents, and a similar government ownership structure. These two firms aren’t listed as the final users of Nvidia’s AI chips, though. Instead, they’re supposed to assemble them into AI servers, which would then be forwarded to a final user, although it’s unclear who their customers are.
Aside from these questionable non-entities, another company that received a license to purchase H200 GPUs has some suspicious links. Zhejiang Yindun Cloud Technology’s executives are reportedly related to the founder of Range Intelligent Computing Technology Group, a data center operator that has sold compute capacity to Chinese military contractors. It’s also reportedly partly operating out of a Range data center.
President Donald Trump banned the export of Nvidia AI GPUs in April 2025, even those customized to meet the performance ceiling Washington set for AI processors. The president reversed the decision late last year in exchange for a 25% cut of the sale, but it still took more than eight months for the first H200 shipments to arrive in China. Beijing’s refusal to give Chinese tech companies the green light to buy the chips for the first few months of the year caused the delay. But once China lifted its import ban on Nvidia chips, several Chinese companies applied for licenses to buy them, and The New York Times reported that around two dozen firms have already received approval, including these questionable ones.
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