$1 Billion worth of Nvidia AI chips enter China despite U.S. ban
Over $1 Billion of banned Nvidia chips, including B200, H100 and H200 models, reportedly entered China between April and June 2025, despite strict U.S. export controls
According to a report, these chips reached Chinese AI firms via grey market channels with distributors in provinces like Guangdong and Zhejiang selling them at up at 50% above US prices
Shenzhen- based repair shops confirmed high demand, servicing hundreds of Nvidia GPUs monthly, most of which likely arrived through unofficial routes.
The smuggling surge has prompted U.S. law makers to consider new legislation mandating location tracking of AI chips. Nvidia has stated it does not support or warranty grey- market products, citing potential risks.
This raises fresh concerns over the effectiveness of U.S. tech export curbs, as China continues its rapid AI advancement.