China efforts to bypass US semiconductor sanctions

Reports indicate that Chinese entities are employing various methods to circumvent United States export restrictions on advanced semiconductors, particularly high-end AI chips.

Initial investigations highlighted the use of subsidiaries, such as the Silicon Valley-based Aivres, to act as conduits for the Inspur Group. Between April 2024 and February 2026, Aivres reportedly exported over $5.6 billion in advanced technology to Southeast Asia, including $3 billion worth of equipment featuring Nvidia’s Blackwell chips. These technologies were allegedly routed to data centers and manufacturers in countries like Malaysia and Indonesia to serve Chinese companies and state-owned enterprises.

Subsequent reports show the emergence of more complex methods, including state-backed financing and smuggling networks. Semi-Tech Leasing Group Co., a lender tied to China’s national semiconductor fund, reportedly used sale-and-leaseback arrangements to finance the purchase of restricted Nvidia Blackwell-series B300 chips. Additionally, a black market has developed using logistical triangulation through Indonesia, Japan, and Hong Kong. These smuggling operations utilize shell companies, falsified shipping labels, and hardware alterations to mask the final destination of restricted hardware.