Despite US restrictions, dozens of firms based in China are repairing banned Nvidia AI chips, pointing to widespread smuggling and high domestic demand.
China’s Premier Li Qiang spoke at the World AI Conference in Shanghai, calling for the establishment of an international institution to guide AI collaboration just days after Washington moved to loosen its industry oversight.
In his address, he described AI as a powerful driver of economic expansion, but noted that regulatory approaches vary widely and urged nations to harmonize their policies.
On Saturday, he cautioned that rapid advancements in AI should not outpace safeguards, calling for an international consensus on risk management.
Li’s remarks followed closely on the heels of President Donald Trump’s recent directive to relax AI regulations in the United States, including measures aimed at curbing what administration officials called “woke” AI systems.
He underscored the dual importance of policy frameworks and open‑source initiatives. “The risks and challenges brought by artificial intelligence have drawn widespread attention … How to find a balance between development and security urgently requires further consensus from the entire society,” he said.
He affirmed that Beijing intends to step up contributions to open‑source AI projects and disseminate its findings to nations in the developing world.
China warns of AI monopoly and global talent barriers
Over the course of three days, the conference convened top executives and government officials against the backdrop of intensifying US-China tensions in technology. The US capital has curtailed exports of specialized chips and related hardware out of concern that they may be repurposed for military use.
Without singling out any nation, Li cautioned that AI development risks being monopolized by just a few players and pointed to the lack of top‑tier semiconductors and restrictions on expert mobility as significant hurdles.
The rapid integration of AI across diverse sectors has sparked debate over moral implications, from misinformation campaigns to workforce disruption and potential loss of technological oversight.
A study released this week cautioned that automated article summaries might slash reader engagement by as much as 80%.
Organized with official support, the annual gathering returns to Shanghai, featuring speakers such as France’s AI envoy Anne Bouverot, academic Geoffrey Hinton, and ex‑Google chief Eric Schmidt. Notably absent from the roster was Elon Musk.
The expo’s showcase spanned established domestic firms like Huawei and Alibaba, emerging ventures such as Unitree, and several international participants including Tesla, Alphabet, and Amazon.
Shenzhen firms quietly repair banned Nvidia AI chips
Repair workshops in China have seen a sharp uptick in requests to service Nvidia AI processors that are subject to US export bans.
According to two industry insiders, roughly twelve independent outfits in Shenzhen are now refurbishing Nvidia’s H100 and A100 GPU models. This includes various other advanced processors that have arrived in China by unofficial routes, reported by Reuters.
US authorities prohibited the H100’s import into China in September 2022, months prior to its public release, in an effort to curb Beijing’s technological growth. The A100 faced similar restrictions, imposed roughly two years after its debut.
One co‑owner, whose company had specialized in Nvidia’s gaming GPUs for the past 15 years, commented that the uptick in repair work since late 2024 has been substantial.
The surge in demand prompted them to launch a dedicated AI repair venture, now servicing as many as 500 Nvidia processors monthly in a facility equipped with a 256‑server testing rack.
Such expansion supports reports of large‑scale smuggling, and government and military purchase records indicate acquisitions by state and defense sectors.
Because of export controls, Nvidia is barred from servicing these blacklisted units in China, whereas customers in regions covered by a standard three‑year warranty typically receive outright replacements.
An Nvidia spokesperson said only the company and authorized partners “are able to provide the service and support that customers need. Using restricted products without approved hardware, software, and technical support is a nonstarter, both technically and economically.”
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