Chinese Defense-Linked University Bypasses US Export Controls to Buy Nvidia AI Chips

Procurement records confirm the university, a key institution linked to China’s defense sector, purchased the hardware through local intermediaries in September and October, triggering fresh scrutiny over the efficacy of Washington’s trade restrictions.

To understand the figure known as the “king of AI,” we discuss the situation with tech journalist Alain McKenna.

University Purchases Bypass U.S. Technology Sanctions

The purchases show that U.S. technology sanctions are not being enforced effectively. According to records cited by Noovo Info, the university’s school of management purchased two H200 units for 874,700 yuan ($131,200) on October 21 from Shaanxi Bosuan Network Technology. Previously, on September 4, the institution’s school of cybersecurity acquired two identical chips for 796,000 yuan ($119,300), Noovo Info reported.

Nvidia Chips Reach China's Military-Linked Universities Despite US Export Restrictions — DRM News

The H200 chips are subject to rigorous export controls that prohibit direct sales to Chinese entities and restrict secondary market resales globally. While the purchase documents were briefly visible on the university’s website, they were removed by Thursday, November 12, according to Noovo Info.

“We firmly oppose the U.S. side’s overstretching of the concept of national security, establishing all kinds of discriminatory lists, and groundlessly suppressing Chinese institutions,” said Mao Ning, a spokesperson for the Chinese Ministry of Foreign Affairs, during a press briefing on Thursday. The ministry stated it was not aware of these specific procurement activities.

Chinese Defense-Linked University Bypasses US Export Controls to Buy Nvidia AI Chips
Photo: Lemonde
Procurement Date Department Quantity Total Cost (USD)
September 4, 2026 Cybersecurity 2 $119,300
October 21, 2026 Management 2 $131,200

Corporate Governance Crisis at Nvidia

The procurement controversy coincides with a period of intense volatility for Nvidia (NASDAQ: NVDA). The company’s stock experienced a decline of more than 8% in informal trading on November 11 following reports of a scandal involving CEO Jensen Huang, as noted by Le Monde. Allegations surfaced regarding a personal relationship between Huang and a Singapore-based executive, Alice Huang, who is reportedly under investigation for potential links to Chinese intelligence services.

Nvidia Shares Fall as Investigations Widen to Alibaba

The broader market impact extends beyond the immediate scandal. TIKR.com reported that Nvidia (NASDAQ: NVDA) shares fell 5.5% on Tuesday, November 10, as investigations widened to include Megaspeed, a Singapore-based firm linked to significant prepayment activity with Alibaba (NYSE: BABA).

Culper Research identified that Alibaba’s Singaporean unit reported over $4.1 billion in prepayments after Megaspeed’s Malaysian subsidiary committed its business to Apex Enterprise Solutions, an Alibaba subsidiary. The Financial Times reported that Alibaba was the founding and primary cloud customer of Megaspeed in Southeast Asia and remains its largest client, and that Apex loaned money to Speedmatrix in June 2024.

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Daniel Foster - Senior Editor, Economy

Senior Editor, Economy An award-winning financial journalist and analyst, Daniel brings sharp insight to economic trends, markets, and policy shifts. He is recognized for breaking complex topics into clear, actionable reports for readers and investors alike.

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