US-Blacklisted Chinese University Buys Nvidia AI Chips

A blacklisted Chinese institute with ties to the military has purchased Nvidia H200 AI chips despite US export rules. Procurement records from October 21 show that Northwestern Polytechnical University bought two of the chips for 123,000 dollars through a local supplier named Shaanxi Bosuan Network Technology instead of buying them straight from Nvidia.

University Background

Northwestern Polytechnical University is based in Xi'an and belongs to China's Seven Sons of National Defense group. The US Commerce Department added the institute to its export blacklist in 2001 because of its alleged involvement in missile research and military projects. The university works on military aircraft, satellites, and missiles. Purchase records show the institute keeps getting US AI computing power by using domestic suppliers to buy chips or rent server access.

Political Reaction

Lawmakers from both the Democratic and Republican parties want stricter rules on China getting advanced American AI technology. Three Republican committee chairmen have asked Nvidia CEO Jensen Huang to attend a briefing on November 18. This request follows reports about his personal life and suspected contacts with a former Singapore tech executive named Alice Huang, whom officials suspect of being a Chinese spy. Nvidia's board said it does not think US national security was harmed, and the company has launched an internal investigation while keeping Jensen as CEO.

Context

Export controls are government rules meant to stop foreign military rivals from getting sensitive technologies like advanced microchips. The US government uses trade blacklists to block sales to foreign schools and companies that pose national security risks. Even with these bans, buyers often use third-party local sellers or server rental companies to get restricted hardware.