Nvidia H200 Chips Reached China-Linked Firms Despite US Blacklist Ties, NYT Finds

A New York Times investigation published on Saturday has found that the Trump administration approved Chinese companies with ties to blacklisted entities and military contractors to buy or handle Nvidia's advanced H200 artificial intelligence chips, raising fresh questions about Washington's screening of sensitive technology sales to China.

The Commerce Department has approved about two dozen Chinese companies to buy or handle the processors, the Times reported, including Baidu, BYD and Tesla Shanghai. Reuters previously reported that Alibaba, Tencent, ByteDance and ZTE Kangxun were also authorised, each allowed tens of thousands of H200 chips.

Key Points

• The Trump administration approved about two dozen Chinese companies to buy or handle Nvidia H200 AI chips, according to a New York Times investigation published on Saturday, November 7, 2026.
• New Matrix, a Chinese firm founded just 17 months ago, was among those approved. When Times reporters visited its registered office outside Beijing, they found an empty office with exposed wiring and no trace of the business in the building directory.
• New Matrix's owners have connections to Wise Road, a Chinese private equity fund blacklisted by the Commerce Department in 2024 for allegedly helping Beijing acquire sensitive semiconductor companies.
• Another approved firm, Maginfra, also had a deserted registered office and is believed to be linked to Inspur, an entity-listed Chinese tech company involved with China's military.
• The Times did not establish that any approved processors were diverted to China's military. Nvidia said H200 shipments to China-based customers were under 1% of data-centre revenue last quarter.

What Happened

The investigation examined the Commerce Department's licensing decisions since the administration authorised H200 sales to China in December 2025, reversing earlier restrictions. Under the arrangement, the Taiwan-made processors are routed through the United States so Washington collects a 25% tariff.

The Times' reporters traced the approved buyers through company records, interviews and visits to registered offices. Two of the firms they examined had offices that appeared empty or deserted. New Matrix, founded only 17 months ago, listed a registered office in an industrial park outside Beijing. Reporters found an empty room with exposed wiring, and neither the building directory nor park management had any record of the business. Analysts told the Times they believed New Matrix could be a front for companies tied to the blacklisted Wise Road fund.

Maginfra, another approved firm, also had a deserted registered office and is believed to be linked to Inspur, a Chinese technology company on the US entity list that is involved with China's military.

Zhejiang Yindun Cloud Technology is linked to Range Intelligent Computing, a cloud provider serving military contractors and a satellite programme for Hebei province's defence bureau. Shanghai Jiatang originates from state-owned Datang Telecom, which supplies technology to the Chinese military.

Background: How the H200 Sales Were Approved

The H200 is one of Nvidia's most powerful artificial intelligence processors, used to train and run large AI models in data centres. Washington spent years restricting exports of the most advanced AI chips to China, saying the technology could strengthen Beijing's military and surveillance capabilities.

That policy changed in December 2025, when the administration authorised H200 sales to China. The decision was presented as a way to keep American technology central to China's AI development while collecting tariff revenue. Critics warned at the time that the chips could still reach military users through intermediaries, a risk the new investigation suggests the licensing process has not fully guarded against.

The Bureau of Industry and Security, which runs export licensing, defended its approach, citing $324 million in penalties for export violations in 2025 and more than 90 enforcement officers hired in 2026.

Nvidia H200 Chips China: The Firms at the Centre of the Findings

The companies named span some of China's best-known technology names and several little-known firms. Baidu, BYD and Tesla Shanghai were among the roughly two dozen companies approved to buy or handle the processors, alongside Alibaba, Tencent, ByteDance and ZTE Kangxun, which Reuters had previously reported were authorised.

The lesser-known names drew the closest scrutiny. New Matrix was founded just 17 months ago, yet it won approval to handle some of the world's most advanced AI chips. Its owners' links to Wise Road, blacklisted in 2024 for allegedly helping Beijing acquire sensitive semiconductor companies, raised the question of whether the firm was acting as a front.

Maginfra's registered office was also deserted, and the Times linked it to Inspur, an entity-listed company involved with China's military. Zhejiang Yindun Cloud Technology's link to Range Intelligent Computing, which serves military contractors, and Shanghai Jiatang's origins in state-owned Datang Telecom added to the pattern.

None of the firms has been accused by the Times of breaking the law, and the investigation did not establish that any chips reached China's military. The findings instead focus on the screening process itself, and on how little was known about some of the companies Washington approved.

Reactions and Quotes

Nvidia defended the sales. Spokesman John Rizzo said "it makes no sense for the Chinese military to depend on American technology," and the company said H200 shipments to China-based customers accounted for under 1% of its data-centre revenue in the quarter ending in July.

The Bureau of Industry and Security pointed to its enforcement record, citing $324 million in penalties for export violations in 2025 and more than 90 new enforcement officers hired in 2026. The agency did not address the specific approvals in detail, and the administration has not yet responded publicly to the investigation.

Why It Matters

The H200 sits at the centre of the race for artificial intelligence supremacy. The chips power the data centres that train the most capable AI models, and Washington has treated access to them as a matter of national security for years.

If advanced chips can reach firms with ties to blacklisted entities or military contractors through approved channels, the licensing system itself becomes the weak point, not smuggling or sanctions evasion. The investigation also lands at a sensitive moment, with Congress watching export controls closely.

What Happens Next

Lawmakers are expected to press the Commerce Department for details, including how New Matrix and Maginfra passed screening. The Bureau of Industry and Security may face calls to review the licences and tighten checks on newly formed companies with opaque ownership.

Frequently Asked Questions

What are Nvidia H200 chips?
The H200 is one of Nvidia's most advanced AI processors, used in data centres to train and run large AI models.

How many Chinese companies were approved?
About two dozen, according to the Times, including Baidu, BYD, Tesla Shanghai, Alibaba, Tencent, ByteDance and ZTE Kangxun.

Did the chips reach China's military?
The Times did not establish that any approved processors were diverted to China's military. The findings concern buyer screening, not proven diversion.

What did Nvidia say?
Spokesman John Rizzo said it makes no sense for the Chinese military to depend on American technology; H200 shipments to China-based customers were under 1% of data-centre revenue last quarter.

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