The Trump administration approved the sale of advanced artificial intelligence (AI) chips to dozens of Chinese companies, many of whose offices were found to be empty, while others had connections to firms sanctioned for national security risks, The New York Times reported Sunday.
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Times → approve → risks
The Commerce Department approved a Chinese firm to use Nvidia’s advanced AI chips despite little evidence that the firm exists, according to the NYT.
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firm → approve → NYT
Several Chinese firms cleared to buy these chips have close ties to blacklisted companies, raising questions about the government’s oversight of its export control policies.
The Bureau of Industry and Security (BIS), a sub-agency of the Commerce Department, granted New Matrix approval to sell Nvidia chips despite little online information about the firm and the firm does not occupy the building listed as its address, per the Times.
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firm → clear → Times
Chinese corporate records reportedly link the firm to Wise Road, a Chinese private equity firm that the U.S. government blacklisted two years ago; analysts suggest New Matrix may be a front for firms associated with the Chinese fund, per the Code of Federal Regulations.
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Matrix → link → Regulations
Wise Road has reportedly aided the Chinese government’s mission to acquire strategically important companies with chip technology.
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Road → aid → technology
Li Bin, the founder of Wise Road, also chairs Tsinghua Unigroup, a technology group with government ownership, the Times reported.
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Times → chair → ownership
The U.S. government added one of Wise Road’s subsidiaries, New H3C Semiconductor Technologies, to the entity list for supplying the Chinese military, per the regulations.
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government → add → regulations
Corporate records show that many other Chinese firms approved to purchase Nvidia chips are connected to firms blacklisted by the United States or work as military contractors in China, per the Times.
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firms → show → Times
The BIS reviews all applications for national security risks and has imposed over $300 million in penalties on companies for export violations in 2025, hiring more than 90 officers to enforce its rules, a BIS spokesman told the Times.
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spokesman → review → Times
The BIS did not immediately respond to a Daily Caller News Foundation comment request.
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BIS → respond → request
An Nvidia spokesperson pointed the DCNF to Nvidia spokesman John Rizzo, who said that “it makes no sense for the Chinese military to depend on American technology” and that Nvidia sells the “first, best and most of our technology in America.”
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Nvidia → point → America
Critics warn that this report raises concerning questions about the Trump administration’s policing of its AI chip export controls.
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report → warn → controls
“I have a ton of concerns that neither the Commerce Department or Nvidia is doing the due diligence needed to ensure that the licensing terms are being followed,” Liz Tobin, a former China director for the White House National Security Council in the first Trump and Biden administrations, told the Times.
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Tobin → have → Times
(RELATED: Chinese AI Firm Slips Past US Chip Ban Through European Back Door)
“If we are going to have an export control regime, it really needs to have proper oversight,” Will Rinehart, a senior fellow at the American Enterprise Institute (AEI), wrote on X on Monday.
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Rinehart → slip → Monday
If we are going to have an export control regime, it really needs to have proper oversight.
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it → go → oversight
— Will Rinehart (@WillRinehart) November 9, 2026
The Biden administration limited AI chip sales to China, believing it would help the Chinese military, although the Trump administration loosened those rules after lobbying from Nvidia CEO Jensen Huang, the Times reported.
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Times → limit → Huang
President Donald Trump gave Nvidia permission to sell the H200, a slightly older but powerful AI chip, to China, provided the U.S. government received some of the proceeds.
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government → give → proceeds
Trump stipulated that the chips, assembled in Taiwan, be transported through the United States to China to ensure the government could collect a 25% tariff on the chips’ value, per the Times.
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government → stipulate → Times
Nvidia launched an independent investigation into reports that Huang had an affair with an AI executive identified as a Chinese spy.
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Huang → launch → spy
“While the Board has no reason to believe that either national security or NVIDIA secrets were compromised, the Board’s inquiry will examine all available information,” Nvidia’s Board of Directors said in a statement.
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Board → have → statement
Huang admitted to the affair in an email to staff and said he would work to regain everyone’s trust.
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he → admit → trust
“Regarding the national security concerns raised in news reports, NVIDIA’s Board of Directors has initiated an independent investigation.
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Board → regard → investigation
I support the investigation and will cooperate fully.
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I → support → investigation
I love our country and our company.
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I → love → country
I am committed to protecting NVIDIA and supporting America’s national security.
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I → commit → security
I am proud and grateful to be an American,” part of the statement read, which an Nvidia spokesperson provided.
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spokesperson → read → which
The Aporia
