Chinese Companies Approved to Buy Nvidia AI Chips Face Scrutiny Over Ties to Sanctioned Firms

The U.S. Commerce Department has approved dozens of Chinese companies to handle Nvidia's H200 chips, but some of these entities have ties to firms under national security sanctions, raising eyebrows among observers ¹³. Among the approved companies, New Matrix and Maginfra stand out due to their suspected connections to blacklisted entities ²³.

New Matrix, one of the approved companies, reportedly has links to a Chinese private equity firm that is on the U.S. government's blacklist. This connection adds another layer of complexity to the approval process, as the U.S. has been cautious about technology transfers to sanctioned entities ²³.

Maginfra, another approved entity, is believed to be associated with Inspur, a company previously blacklisted by the U.S. for its support of the Chinese military. This association suggests that the U.S. may be reevaluating its stance on certain Chinese tech firms, despite previous restrictions ³.

Zhejiang Yindun Cloud Technology, yet another approved company, has executives with ties to Range Intelligent Computing Technology Group, which has sold computing capacity to Chinese military contractors. These connections highlight the intricate web of relationships within the Chinese tech sector and the potential for indirect support to military endeavors ³.

The approval process for these Chinese companies comes after a significant period of uncertainty. In April 2025, former President Donald Trump had imposed a ban on the export of Nvidia's AI GPUs to China, but this restriction was lifted later that year. Despite the lifting of the ban, it took nearly eight months for the first H200 shipments to arrive in China ³.

Interestingly, New Matrix, one of the approved companies, faces additional scrutiny. Created just 17 months before the report, the company's existence as a meaningful entity is questionable, with little evidence of its significance found. Furthermore, its listed office address does not even contain a listing for New Matrix in the local business directory ².

The office of New Matrix in China is described as empty and dilapidated, adding to the mystery surrounding the company's operations and its ability to conduct business effectively ²³.

What we know

• - Some of the approved Chinese companies have ties to firms under national security sanctions. ¹²³
• - New Matrix has connections to a Chinese private equity firm that is blacklisted by the US government. ²³
• - Maginfra is suspected to be linked to Inspur, a company blacklisted by the U.S. for supporting the Chinese military. ³
• - Zhejiang Yindun Cloud Technology has executives related to Range Intelligent Computing Technology Group, a data center operator that has sold compute capacity to Chinese military contractors. ³
• - New Matrix's office in China is described as empty and dilapidated. ²³
• - Little evidence of New Matrix's existence as a meaningful company could be found. ²

What remains unclear

• - The exact nature and extent of the connections between New Matrix and other blacklisted entities.
• - The reason behind the empty and dilapidated condition of New Matrix's office.
• - Whether New Matrix will be able to effectively operate and fulfill its role in handling Nvidia's H200 chips.