The US government spent years building an elaborate export control regime to keep its most advanced AI chips out of Chinese hands. China’s black market responded with a shrug and a markup.
According to the Financial Times, over $1 billion worth of Nvidia’s advanced AI processors, including the highly restricted B200, H100, and H200 chips, were illicitly funneled into China in just three months following the Trump administration’s tightening of export controls.
The price of prohibition
Nvidia’s B200 racks are reportedly selling on China’s black market for between Rmb 3 million and Rmb 3.5 million, roughly $489,000. That represents a nearly 50% premium over equivalent prices in the US.
The smuggling operations have grown increasingly sophisticated. Shipments are routed through third countries, with Vietnam serving as a particularly popular transit point. Falsified documentation accompanies the hardware, making it difficult for customs authorities to distinguish legitimate commerce from sanctions-busting operations. The deals are happening through a sprawling network of distributors and middlemen concentrated in provinces like Guangdong and Zhejiang.
