Concerns are growing that neither the Commerce Department nor Nvidia is adequately vetting Chinese firms authorized to receive the company’s H200 artificial intelligence chips. A prominent example is New Matrix, which made the approved list despite operating out of vacant spaces.
Unverified Companies and Security Concerns
According to The New York Times, New Matrix maintains empty offices described as a hollow gray shell with loose wires hanging from the ceiling. The publication found virtually no evidence of the company operating in any substantive capacity. Online data for the firm, established 17 months ago, remains minimal, and the building directory omits its name. Furthermore, the nearby industrial park property management agency confirmed that neither a receptionist nor a manager possessed any records of the business.
Available details regarding New Matrix highlight significant security risks. Its proprietors maintain connections to a Chinese private equity enterprise that has faced US government blacklisting since 2024. The Times reported that this oversight failure represents a broader pattern involving the approval of chip buyers linked to entities facing trade restrictions over national security concerns.
Policy Shifts and Lobbying Efforts
Prior US policies under the Biden administration blocked Nvidia from exporting chips to China. However, the Trump administration eased these restrictions following an agreement where Nvidia promised the government a 15-percent share of total sales. Jensen Huang, the chief executive officer of Nvidia, also spearheaded a major lobbying push while reportedly becoming the target of an espionage plot by China’s Ministry of State Security.
