The thing is China itself has no incentive to have their companies skirt the export ban. The whole saga is just completely ironic and incredibly unorganic. The alleged "spy" and her firm Megaspeed was doing export circumventing mechanisms to China not because the CCP was allegedly pushing her to do so, in fact it was a counter-reaction to how restrictive the Chinese customs became to importing Nvidia while the corresponding customers are hungry for that compute that is piling up in the ports. China is doing a zero-sum policy where every American chip that gets passed to their tech companies is one less domestic/chinese, which equates less money for R&D and catch up.

So something very strange going on here, along with the timing, in time where Anthropic is preparing for an IPO and briefly after the midterms where the median voter rejected AI wholesale. I suspect this might have been a long game to turn the man down that is standing for open-source and the freedom to build AI. Heck epstein was having a ring of elites diddling minors and nothing scandalous came out of it.

All the regulators that kickstarted this dumb export controls in 2022, which in-turn made the american AI-stack weaker vs China, while also using doomer-fud about safety must feel glorious right now.

Sad day for developers.

What is inorganic? China banning GPUs ≠ China not wanting the GPUs. It is not unreasonable to imagine China not wanting to shake the sanctions boat, so offloading the crime into another country allows them to still have their cake and eat it too. They get to develop technology locally, they have undeniable regulations on the books that make them compliant within the expected framework of US-China trade, and then still get to have their MVPs rent restricted hardware from gray market dealers in Malaysia. 20% of NVIDIA's FY26 was channeled through this framework. The point of the system is what it does.