China published draft export controls covering AI processors at 14nm or below, advanced DRAM and 3D NAND, and large AI cluster interconnects, with public comment open until mid-November
US and Taiwan File Charges as Banned Nvidia B300 Chips Found Operating in China
The combination of active chips found circulating in China and two separate criminal indictments shows the export control enforcement regime is being tested through sophisticated supply chain schemes. The scale of alleged diversion, roughly $2.5 billion in one US indictment alone, indicates the controls are being circumvented at significant volume.
The full picture
Israeli security firm Lava found 32 Nvidia B300 GPUs, banned from export to China, running behind China Telecom addresses, discovered through Nvidia's DCGM Exporter, a GPU-monitoring tool some operators leave online without password protection. The chips' presence in China is part of a broader pattern documented through separate enforcement actions. US federal prosecutors indicted Supermicro's Taiwan general manager Ruei-Tsang Chang and two others for allegedly conspiring to divert roughly $2.5 billion in Supermicro servers containing Nvidia Blackwell-class chips to Chinese buyers via a Southeast Asian pass-through company. Taiwan's Keelung District Prosecutors' Office separately indicted nine people for a five-step scheme that defeated Supermicro's compliance controls from the inside, exploiting a regime designed to track every unit. B300 servers are selling for approximately $1 million in China, nearly double US prices. In a related development, China has drafted export control rules of its own covering AI processor designs at 14nm or below, DRAM at 18nm or below, advanced 3D NAND designs, and interconnects for AI clusters exceeding 10,000 accelerators, with public comment open until mid-November.
How it developed
Lava found 32 Nvidia B300 GPUs, banned from export to China, operating behind China Telecom addresses via an unprotected GPU-monitoring tool
Taiwan's Keelung District Prosecutors' Office indicted nine people for a five-step scheme to smuggle Nvidia B300 GPUs to China by defeating Supermicro's compliance controls from the inside
US federal prosecutors indicted Supermicro's Taiwan general manager and two others for allegedly diverting ~$2.5 billion in Nvidia Blackwell-class servers to China via a Southeast Asian front company
Sources
Related
- Split fromChina's AI export control catalogue
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