Military-Linked Chinese University Purchases Nvidia H200 Chips Despite US Export Blacklist

Reviewed byNidhi Govil

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Northwestern Polytechnical University, a Chinese institution with deep ties to the People's Liberation Army, acquired Nvidia H200 chips worth $123,000 in October despite being on the US export blacklist since 2001. Procurement records reveal the university also rented access to additional restricted chips through domestic suppliers, exposing significant gaps in Washington's efforts to prevent China from obtaining advanced AI computing power for military applications.

Military-Linked Chinese University Circumvents US Restrictions

Northwestern Polytechnical University, a Chinese university with deep ties to the People's Liberation Army, purchased two Nvidia H200 chips in October for 874,700 yuan ($123,000) despite being on the US export blacklist, according to procurement records reviewed by Reuters

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. The purchase was made through a domestic supplier, Shaanxi Bosuan Network Technology, rather than directly from Nvidia

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. This transaction highlights critical gaps in US export controls designed to prevent China from accessing advanced AI chips that could accelerate military modernization.

The university, based in Xi'an, is part of China's "Seven Sons of National Defense" group of elite defense-focused universities and conducts research on military aircraft, missiles, and satellites

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. The US Commerce Department added Northwestern Polytechnical University to its Entity List in 2001 over alleged missile-proliferation activities and military research, tightening restrictions in 2019 to deny most export licenses

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Extensive Access to Restricted AI Computing Power

Beyond the direct purchase of Nvidia H200 chips, Northwestern Polytechnical University secured broader access to restricted AI computing power through rental agreements. Procurement records show the university's cybersecurity school signed two seven-month contracts in January, valued at 441,700 yuan and 441,000 yuan, for servers containing eight H200 chips each

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. These contracts were designated for fine-tuning AI models and reinforcement-learning training, applications central to developing sophisticated AI systems.

Source: TweakTown

Source: TweakTown

The university also rented access to servers containing eight Nvidia A100 chips and eight A800 chips, both of which are banned from export to all Chinese entities

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. In total, Northwestern Polytechnical obtained access to Nvidia H200 chips and other powerful processors through five contracts for rented computing capacity from Chinese companies this year

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. The H200 represents Nvidia's most capable chips for training and running advanced AI systems, requiring US export license approvals that are normally denied for blacklisted institutions

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Widespread Pattern Across Chinese Institutions

A Reuters review of 26 Chinese procurement and corporate records from this year found that universities and research institutions are buying US-restricted Nvidia chips or renting access to Nvidia-powered computing services through domestic suppliers

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. Several institutions had close links to China's defense industry or military research. Shenzhen University bought three H100 chips for 769,800 yuan in September, while Beihang University, another member of the Seven Sons with close ties to aerospace and defense research, purchased four A800 chips in April for 489,000 yuan

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These findings demonstrate how Chinese institutions with military ties continue to obtain US AI computing power through domestic suppliers, either by buying chips outright or renting access to servers containing them

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. The Trump administration began allowing some H200 exports to China on a case-by-case basis in January, but that policy did not lift the separate restrictions applying to Entity List organizations such as Northwestern Polytechnical

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Intensifying Scrutiny on Jensen Huang and Nvidia

These revelations arrive as Nvidia and CEO Jensen Huang face mounting scrutiny in Washington over his lobbying for looser restrictions on sales of AI chips to China

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. Huang has argued that continued US sales to China would preserve American technological leadership and keep Chinese customers reliant on US technology

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. However, US lawmakers from both Democrats and Republicans counter that access to Nvidia's most powerful AI chips can speed China's development of AI systems for weapons design, intelligence analysis, and military modernization

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Source: Benzinga

Source: Benzinga

Three Republican congressional committee chairmen have requested a briefing with Huang on November 18 over his reported contacts with an alleged Chinese intelligence operative

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. Both parties in Congress have urged stronger controls on China's access to advanced AI chips, including chip-tracking requirements and greater congressional oversight of exports

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. The debate centers on whether making China's tech industry dependent on cutting-edge Nvidia AI chips secures US tech supremacy, or whether it enables Chinese military capabilities that shift the balance of power in the Asia-Pacific region

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