An investigation has found that addresses for two Chinese companies approved to purchase Nvidia H200 chips led to empty offices, and the receptionists at the buildings were unfamiliar with them. According to The New York Times, these companies didn’t just have empty offices; their executives are often linked to other firms sanctioned by the United States for working with and providing advanced technology to the Chinese military.

This news has revealed concerns that the U.S. Department of Commerce is simply rubber-stamping GPU export license applications instead of scrutinizing each one for potential links to Beijing. “I have a ton of concerns that neither the Commerce Department or Nvidia is doing the due diligence needed to ensure that the licensing terms are being followed,” former China director for the White House National Security Council Liza Tobin told the publication.

Many of these approved companies include well-known entities like Baidu, BYD, Tesla Shanghai, as well as ZTE, which has previously been blacklisted from the U.S. market, Alibaba, Tencent, and ByteDance. However, the outfit’s investigation also revealed approval for two relatively unknown firms: New Matrix and Maginfra. The offices for both companies were empty shells with some office furniture, and people working nearby said they’d never heard of the company or seen anyone go to the deserted spaces.

S. for helping Beijing acquire sensitive chip technologies. Furthermore, Mr. Li chairs Tsinghua Unigroup, a tech conglomerate partly owned by the Chinese government, and owns New H3C Semiconductor Technologies, which has also been added to the Commerce Department’s Entity List for cooperating with the Chinese military.

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