Northwestern Polytechnical University, a Chinese institution with military ties and listed on a US export blacklist, purchased two Nvidia H200 chips last month for 874,700 yuan, approximately $123,000, according to procurement records published on its website on October 21. The chips were acquired for the university’s management school from Shaanxi Bosuan Network Technology, a domestic supplier, rather than directly from Nvidia. This university, based in Xi’an, is part of the elite group known as the Seven Sons of National Defense, which focuses on defense-related research including military aircraft, missiles, and satellites. The purchase is significant as it highlights ongoing efforts by institutions with military connections to obtain advanced US technology despite restrictions.
In addition to the recent purchase, Northwestern Polytechnical University has secured access to H200 chips and other powerful Nvidia processors through five contracts for rented computing capacity from various Chinese companies this year. The H200 chip is among Nvidia's most advanced for training and operating sophisticated AI systems, and its export requires US government approval, which is typically denied for entities on the Entity List. The US Department of Commerce added Northwestern Polytechnical to this list in 2001 due to alleged missile-proliferation activities, and restrictions were further tightened in 2019, making it nearly impossible for the university to receive US technology without special permissions.S1S2
The procurement records reveal a broader pattern, as a review of 26 Chinese procurement and corporate records from this year indicates that several universities and research institutions have been acquiring US-restricted Nvidia chips or renting Nvidia-powered computing services through domestic suppliers. Many of these institutions maintain close ties to China's defense industry or military research. Nvidia CEO Jensen Huang has faced scrutiny in Washington for his lobbying efforts aimed at loosening restrictions on AI chip sales to China, arguing that continued sales would maintain US technological leadership and dependency from Chinese customers on US technology. However, US lawmakers express concern that access to these advanced chips could accelerate China's military modernization and AI capabilities.S1S2
As the situation evolves, the implications of such transactions are under heightened scrutiny, particularly as US lawmakers from both parties are advocating for stronger controls on exports of advanced technologies. The ongoing debate includes calls for chip-tracking requirements and increased congressional oversight of technology exports to ensure that sensitive technologies do not bolster China's military capabilities. This context underscores the tension between technological collaboration and national security concerns, particularly regarding the military applications of AI technologies.S1S2
