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The US let Nvidia sell chips to an empty office in China
Questions are being raised about how US officials and Nvidia vetted Chinese companies approved to handle Nvidia’s H200 AI chips. One approved firm, New Matrix, appears to have no functioning office or clear business presence, raising concerns about whether checks are adequate and whether restricted entities could gain access to advanced chips.
The New York Times found New Matrix’s listed premises empty, with no listing in the building directory and no record of the company at the industrial park’s management office. The firm was created 17 months ago, and its owners have ties to a Chinese private equity firm blacklisted by the US since 2024. The report describes this as part of a broader pattern; the Trump administration eased restrictions on Nvidia chip sales to China after the company agreed to give the US government 15 per cent of sales.
In short
- New Matrix was approved to handle Nvidia H200 chips despite signs it may not operate.
- Its owners have ties to a US-blacklisted Chinese investment firm.
- The case raises questions about vetting and chip export controls.
Steelman: both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
Allowing sales under controlled conditions can serve US commercial interests, preserve Nvidia’s competitiveness and give officials a way to monitor shipments. An apparently empty office does not by itself prove that New Matrix is a front or that chips will reach restricted users; a proportionate response would investigate the company and strengthen checks where evidence shows gaps.
The case against
Advanced AI chips could strengthen China’s military or strategic capabilities, so approval should depend on reliable knowledge of the buyer, its operations and its links. An empty listed premises and ties between the owners and a blacklisted firm raise reasonable concerns that the vetting was inadequate; easing restrictions while relying on such checks may create opportunities for diversion that are difficult to reverse.
Explained simply
Nvidia is a US company that designs chips used to train and run artificial intelligence systems. Its H200 chip is a powerful model, and US rules have restricted which advanced chips can be sold to China over concerns about their use in technology and security.
US officials decide what can be exported, while companies such as Nvidia and approved buyers are involved in sales and checks on who will handle the chips. New Matrix is a Chinese firm named in the report; its owners are linked to a private equity firm that the US has blacklisted, meaning it faces US restrictions.
The case raises questions about how buyers are vetted and whether controls can prevent restricted organisations from obtaining advanced chips. Those checks matter because chip sales affect both the development of AI and US-China trade and security relations.
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