How banned AI chips end up in China
Despite US export controls, AI chips are smuggled into China through multi-tier distribution channels and weak enforcement. An estimated 290,000 to 1.6 million H100-equivalent chips were smuggled by 2025, accounting for a third of China's total compute. Smugglers exploit intermediaries, shell companies, and regulatory gaps, while enforcement relies heavily on self-policing by companies with limited incentives.
How banned AI chips end up in China
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