An investigation has found that two Chinese companies approved to purchase Nvidia H200 AI chips had empty offices, sparking concerns that the US Department of Commerce is rubber-stamping export licenses without scrutinising potential links to Beijing.
The New York Times investigation, reported by multiple outlets, identified New Matrix and Maginfra as among around two dozen Chinese firms cleared to buy the chips. Their listed addresses led to empty offices with some office furniture, and nearby workers said they had never heard of the companies.
Liza Tobin, former China director for the White House National Security Council, told the paper: "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."
New Matrix was created 17 months ago and its website reportedly carries no information about owners or history. Public records show it was founded by Li Bin, who chairs Tsinghua Unigroup, which is partly owned by the Chinese government, and owns New H3C Semiconductor Technologies, which has been added to the Commerce Department’s Entity List for cooperating with the Chinese military. Li and two other primary owners are connected to Wise Road, a private equity firm sanctioned by the US since 2024. Maginfra is suspected of ties to Inspur, blacklisted in 2023 for supporting the People's Liberation Army, with the companies sharing personnel, patents and a similar government ownership structure.
Neither company is listed as the end user of the chips; they are supposed to assemble them into AI servers, though their customers are unclear. Another approved firm, Zhejiang Yindun Cloud Technology, has executives reportedly related to the founder of a data centre operator that has sold compute capacity to Chinese military contractors.
The licences followed President Donald Trump's reversal of his April 2025 ban on exports of Nvidia AI GPUs, after Nvidia agreed to give the government a share of sales. The first H200 shipments took more than eight months to arrive in China; Beijing's refusal to give Chinese tech companies the green light to buy the chips for the first few months caused the delay.
Analysis
Why This Matters
- National security risk: US may be allowing advanced AI chips to reach entities connected to the Chinese military despite trade restrictions.
- Oversight failure: The investigation points to a potential lack of due diligence by both the Commerce Department and Nvidia, undermining the credibility of export controls.
- Future of chip sales: Any tightening of oversight or revocation of licences could affect Nvidia's China revenue and broader US-China tech tensions.
Background
The US under the Biden administration restricted exports of advanced AI chips to China, citing national security. In April 2025, President Trump imposed a ban on Nvidia's H200 chips, but reversed it late last year after Nvidia agreed to share a portion of sale proceeds. The first shipments reached China only after Beijing lifted its own import ban, following months of delay. The Commerce Department's Bureau of Industry and Security (BIS) oversees export licences for such sales.
What to Watch
- Whether the Commerce Department reviews or revokes licences for New Matrix, Maginfra and Zhejiang Yindun Cloud Technology.
- Any move by Nvidia to strengthen its own compliance checks on Chinese buyers.
- Potential congressional scrutiny or new legislation tightening the vetting process for advanced chip exports.
Checked
12 claims in this story checked against 2 sources: 11 supported.
Show each claim
- SupportedThe US approved Nvidia chip sales to Chinese firms whose offices were empty.The Verge: “The US let Nvidia sell chips to an empty office in China.”
- SupportedConcerns were raised that Commerce and Nvidia were not properly vetting license applications.Latest from Tom's Hardware: “This news has revealed concerns that the U.S. Department of Commerce is simply rubber-stamping GPU export license applications instead of scrutinizing each one for potential links to Beijing.”
- SupportedThe listed addresses for New Matrix and Maginfra led to empty offices, and nearby people said they had never heard of the companies.Latest from Tom's Hardware: “The offices for both companies were empty shells with some office furniture, and people working nearby said they’d never heard of the company or seen anyone go to the deserted spaces.”
- SupportedLiza Tobin said she had “a ton of concerns” about Commerce and Nvidia’s due diligence.Latest from Tom's Hardware: ““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,” former China director for the White House National Security Council Liza Tobin told the publication.”
- SupportedAround two dozen Chinese firms had received approval to buy the chips.Latest from Tom's Hardware: “The New York Times reported that around two dozen firms have already received approval, including these questionable ones.”
- SupportedNew Matrix was created 17 months ago.The Verge: “Only scant information can be found online about New Matrix, which was created 17 months ago.”
- Partly supportedLi Bin and two other primary owners are connected to Wise Road, which the story says has been sanctioned by the US since 2024.Latest from Tom's Hardware: “public company records reveal that it was founded by Li Bin, who, along with two other primary owners, are connected to Wise Road, a Chinese private equity firm sanctioned by the U.S. for helping Beijing acquire sensitive chip technologies.”
- SupportedMaginfra is suspected of ties to Inspur, which was blacklisted in 2023 for supporting the People’s Liberation Army.Latest from Tom's Hardware: “Maginfra, on the other hand, is suspected of being linked to Inspur, which Washington has blacklisted since 2023 for supporting the People’s Liberation Army”
- SupportedNew Matrix and Maginfra are not listed as the chips’ final users; they are supposed to assemble them into AI servers, and their customers are unclear.Latest from Tom's Hardware: “These two firms aren’t listed as the final users of Nvidia’s AI chips, though. Instead, they’re supposed to assemble them into AI servers, which would then be forwarded to a final user, although it’s unclear who their customers are.”
- SupportedZhejiang Yindun Cloud Technology’s executives are reportedly related to the founder of a data-centre operator that sold compute capacity to Chinese military contractors.Latest from Tom's Hardware: “Zhejiang Yindun Cloud Technology’s executives are reportedly related to the founder of Range Intelligent Computing Technology Group, a data center operator that has sold compute capacity to Chinese military contractors.”
- SupportedTrump reversed the April 2025 export ban after Nvidia agreed to give the government a share of sales.Latest from Tom's Hardware: “President Donald Trump banned the export of Nvidia AI GPUs in April 2025 , even those customized to meet the performance ceiling Washington set for AI processors. The president reversed the decision late last year in exchange for a 25% cut of the sale”
- SupportedBeijing’s refusal to let Chinese tech companies buy the chips during the first few months caused the first H200 shipments to take more than eight months to arrive in China.Latest from Tom's Hardware: “it still took more than eight months for the first H200 shipments to arrive in China . Beijing’s refusal to give Chinese tech companies the green light to buy the chips for the first few months of the year caused the delay.”
