> Even if the Chinese government instigated her funneling GPUs IMO it'd just make he a smuggler and not a sp

It's not even smuggling either; if the destination government is cool with your imported product, you declare your import like every other legal import. Using 3rd party countries to go around export restrictions is a very old entry in the sanctions-busting playbook; I'd bet every single sanctioned country in the history of sanctions has done this in some shape or form if there existed at least one third country that traded with both sanctioner and sanctionee.

But the destination government is not cool with it. CCP have strict limits on Nvidia imports to encourage their domestic GPU industry. There is 10$billion of nvidia GPUs sitting on a dock in Hong Kong rn because they are blocked from import.

Yes, but that's what smuggling is.