Commerce Dept. Approved Nvidia H200 Chips for Firms With Sanctions Ties

The U.S. Commerce Department has granted approval to dozens of Chinese companies to receive Nvidia's high-performance H200 chips, even as some of those firms maintain connections to entities already under American sanctions on national security grounds, according to a New York Times investigation.

Among the approved recipients were companies operating out of what appear to be empty or minimal offices, raising questions about whether adequate vetting was conducted before licenses were granted. The H200 is among Nvidia's most powerful artificial intelligence chips and has been subject to increasingly strict export controls aimed at preventing advanced computing technology from reaching adversaries.

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The approvals highlight a persistent tension in U.S. export policy: the government has sought to restrict China's access to cutting-edge semiconductors while simultaneously processing a large volume of license applications under review frameworks that critics argue are insufficiently rigorous. The existence of sanctioned-entity ties among approved firms suggests potential gaps in the screening process.

National security analysts have long warned that front companies and thinly staffed offices can serve as conduits for technology transfers that ultimately benefit restricted parties. The Commerce Department's Bureau of Industry and Security is responsible for evaluating such applications, but the volume and complexity of requests has drawn scrutiny from lawmakers and watchdog groups alike.

The findings are likely to intensify congressional pressure on the Biden and Trump administrations' semiconductor export control regimes and may prompt calls for stricter due-diligence requirements before advanced AI hardware is cleared for Chinese buyers. Continue reading at NYT > Business.