How did the university obtain the chips despite being on the US Entity List?

It bought them from Shaanxi Bosuan Network Technology, a domestic supplier, rather than directly from Nvidia, according to the procurement record.

What kind of university is Northwestern Polytechnical?

It is based in Xi'an and conducts research related to military aircraft, missiles and satellites, and is a member of China's 'Seven Sons of National Defense' group.

When was the university added to the US trade blacklist?

The US Department of Commerce added it to the Entity List in 2001 over alleged missile-proliferation activities, and tightened restrictions in 2019.

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Northwestern Polytechnical buys Nvidia H200 chips for 874,700 yuan despite blacklist

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3 Key Points

What happened
Northwestern Polytechnical University bought two H200 chips last month for 874,700 yuan ($123,000) from Shaanxi Bosuan Network Technology, per an October 21 procurement record cited by Reuters.
Why it matters
The purchase shows how institutions with military ties keep obtaining restricted AI computing power through domestic suppliers, either by buying chips outright or renting access to servers containing them.

WHO IT HITSThe purchase highlights a gap in export controls for US policymakers and enforcement agencies: blacklisted institutions can still acquire restricted chips indirectly through domestic intermediaries, according to the procurement records.

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Context & Analysis

Northwestern Polytechnical's procurement is part of a broader pattern. A Reuters review of 26 Chinese procurement and corporate records from this year found universities and research institutions buying US-restricted Nvidia chips or renting access to Nvidia-powered computing services through domestic suppliers. Several had close links to China's defense industry or military research.

The purchase comes as Nvidia and CEO Jensen Huang face mounting scrutiny in Washington over his lobbying for looser restrictions on AI chip sales to China. The H200 is among Nvidia's most capable chips for training and running advanced AI systems and is subject to US export licence approvals, which are normally denied for blacklisted institutions such as Northwestern Polytechnical.

Separately, Huang is under pressure after admitting on Sunday to being unfaithful to his wife. Nvidia's board announced an independent investigation into whether he was targeted by a foreign intelligence operation following reports linking him to Alice Huang, accused of working for Chinese intelligence. Senator Kevin Cramer called on Huang to step down, and three Republican congressional committee chairmen requested a briefing with him on November 18.

FAQ

How did the university obtain the chips despite being on the US Entity List?: It bought them from Shaanxi Bosuan Network Technology, a domestic supplier, rather than directly from Nvidia, according to the procurement record.
What kind of university is Northwestern Polytechnical?: It is based in Xi'an and conducts research related to military aircraft, missiles and satellites, and is a member of China's 'Seven Sons of National Defense' group.
When was the university added to the US trade blacklist?: The US Department of Commerce added it to the Entity List in 2001 over alleged missile-proliferation activities, and tightened restrictions in 2019.

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