The Underground Network Sneaking Nvidia Chips Into China

d5dude

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https://www.wsj.com/tech/the-underground-network-sneaking-nvidia-chips-into-china-f733aaa6

Enforcement of the Biden administration’s export curbs on Nvidia chips largely rests with the Commerce Department and the myriad companies along the semiconductor supply chain. Many foreign governments and jurisdictions aren’t legally required to impose the U.S. controls, and such chip sales to China aren’t generally considered a criminal offense in those places, according to international trade lawyers.

For instance, the student transporting the Nvidia chips didn’t break any Singaporean laws, according to the lawyers, as the tech components aren’t subject to any local export restrictions.

SG is now a global hub for getting around US export controls, very good.
 

Dracky

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If the margin is good, many people travelling to China should also join in the re-selling of Nvidia chips. Most won't care about US export controls.

Also WSJ is not quite correct to call it "sneaking" chips into China since neither Singapore or China considers the act illegal.
 

Shinning_Wolf

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If the margin is good, many people travelling to China should also join in the re-selling of Nvidia chips. Most won't care about US export controls.
Can't china just copy and paste their technology?
 

ineser

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"Neutrality" ish the best way to go. Best of both worlds when two big bois playing tariff game.
 

uselessbum

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Smuggling in person is silly when they can be easily reexported from places like vietnam. Seriously, you will be shocked as to how many GPUs are being hoarded in vietnam for the purpose of reselling to countries facing restrictions.

:(
 

d5dude

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If the margin is good, many people travelling to China should also join in the re-selling of Nvidia chips. Most won't care about US export controls.

Also WSJ is not quite correct to call it "sneaking" chips into China since neither Singapore or China considers the act illegal.

US gov can only fine Nvidia for selling chips to people flouting the export controls, they cannot do anything to tiongs who are re-exporting them from SG. I read from the article there is good profit margin, I wonder how many Singaporeans are already doing this.
 

Shinning_Wolf

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Smuggling in person is silly when they can be easily reexported from places like vietnam. Seriously, you will be shocked as to how many GPUs are being hoarded in vietnam for the purpose of reselling to countries facing restrictions.

:(
Ironically Taiwan does that too, and Hong Kong too before it became china.
 

cal127

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Understandably its predictable there will always be a black market. The problem is the China fanbois here keep claiming China is well on its way to being self suffciient despite US sanctions. :s13:
 

doogyhatts

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I don't think the buyers are looking at RTX 4K series. But rather the A40, A100 and H100.
 

cal127

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https://www.wsj.com/tech/the-underground-network-sneaking-nvidia-chips-into-china-f733aaa6



SG is now a global hub for getting around US export controls, very good.

Not the best value for money. NVIDIA gaming GPUs are a better deal than the data center ones, for many scientific computing purposes. many people, even outside China, buy them for ML/deep learning purposes. in fact NVIDIA has to put special legal terms in their driver EULAs to prohibit them from being used outside of consumer PCs, otherwise they would cannibalize data center sales. The novelty here is doing this at a large scale. :s13:
 

d5dude

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Clown mods moved my Nvidia thread to CAL just because there is also China in the topic. :ROFLMAO:
 

Krabs.

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maybe their middle also 自己人 to earn another layer .... since country willing to pay ANY price for the political goal of AI race
 

Dracky

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Can't china just copy and paste their technology?

China is facing obstacles in logic design software and manufacturing process, among other things.

According to the WSJ,

Chinese technology businesses are busily creating their own high-end AI chips, but they confront substantial obstacles. Until China can produce comparable AI chips domestically, the black market for Nvidia's advanced products is likely to persist. The student who successfully smuggled the chips expressed a willingness to continue smuggling, driven by both financial gain and a sense of national contribution. This indicates the presence of a persistent and adaptive illicit supply chain that circumvents US export rules.
 

hardindex

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https://hk.finance.yahoo.com/news/螞蟻搬家-中國留學生偷運nvidia晶片回國-每塊賺100美元-律師-沒有違反新加坡法律-032537238.html




Chinese Students Smuggling Nvidia Chips Back Home, Earning $100 per Chip. Lawyer: No Violation of Singaporean Law
BossMind
July 5, 2024


The U.S. has been tightening export restrictions on high-end chips to China, but it was recently revealed that the Chinese Academy of Sciences and several universities have already obtained advanced AI chips from Nvidia. According to The Wall Street Journal, a Beijing-based distributor receives dozens of chips every month, with a very stable supply. The report found that the supply is smuggled into China by international students from Singapore in a method reminiscent of "ants moving house" (a term used to describe small-scale, repeated smuggling). Although the quantities involved are small, they can meet the limited needs of AI startups or research institutions. A lawyer stated that the students transporting Nvidia chips are not violating Singaporean law, as technical components are not subject to local export restrictions.

The report interviewed a 26-year-old Chinese student in Singapore who, in November last year, transported six Nvidia A100 graphics processing units in his suitcase to China, earning 100(approximatelyHK100(approximatelyHK780) per chip. He revealed that the smuggling job was introduced by an acquaintance at his university, and the process went very smoothly. He openly stated, "I'm happy to contribute to my country," and would do it again if given the opportunity.

The supply of smuggled chips is reportedly very stable, with over 70 distributors publicly claiming online that they can supply Nvidia chips. The Wall Street Journal contacted at least 25 of these distributors, finding that each distributor can provide dozens of chips per month on average. Most sellers promise delivery within weeks after receiving an order, and some even sell entire servers, each containing eight high-end Nvidia chips, priced at around 300,000(approximatelyHK300,000(approximatelyHK2.34 million). However, the quantities supplied by these distributors are limited and insufficient to meet the demands of tech giants, but they are just enough to fulfill the small-scale needs of AI startups or research institutions.

Additionally, advertisements for entire Nvidia servers have appeared on the Chinese video platform Douyin, priced at approximately 2.7 to 3 million RMB. Some ads claim to have 30 or even 64 units in stock, available for pickup in Shenzhen. Distributors in Shanghai also offer ready stock, describing the servers as "top-tier" configurations.

In response, the U.S. Department of Commerce declined to comment. Nvidia stated that, in accordance with U.S. export controls, the company does not sell regulated advanced chips to China and primarily works with well-known partners who comply with regulations.

An international trade lawyer explained that many foreign governments and jurisdictions do not have legal requirements to enforce U.S. control regulations, and selling Nvidia's advanced chips to China in these regions is generally not considered a criminal offense. Moreover, the Chinese students responsible for transporting Nvidia chips are not violating any Singaporean laws, as technology product components are not subject to export restrictions in the country.



Law minister and Trade minister sleep for whole year, now trump took over still sleeping. Will SG get punished? Trump just throw a 10% levy on China starting today
 
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