The Trump administration is reportedly considering tighter restrictions on AI chip exports to China, building on measures first implemented and expanded under the Biden administration.

Since October 2022, the US has restricted high-performance AI chip exports to curb China’s AI advancements. Despite these efforts, demand for Nvidia’s AI chips in China remains strong, fueling a growing gray market.

Intermediaries in Vietnam, Malaysia, and Taiwan help move Nvidia’s Blackwell and H200 chip systems into China, often at inflated prices.

Traders claim they can deliver hundreds of restricted servers monthly by bypassing regulations, such as altering identification numbers.

Nvidia and authorities in Singapore and Taiwan have tightened identity checks and inspections, but merchants continue to evade these measures.

Chinese firms still rely on the gray market or alternative products like Nvidia’s H20 chips to meet AI training needs. While some adapt their strategies, high-end chips remain crucial.