Reports indicate that over $1 billion worth of Nvidia AI chips have been smuggled into China, circumventing U.S. export controls imposed during the Trump administration. This surge in unauthorized sales has led to a booming repair market within China for these banned products. As Nvidia addresses the issue, stating that smuggling operations are not endorsed, analysts express concern about the long-term implications of these transactions for U.S. technological leadership. Controversy surrounds the reinstatement of chip sales to China, with U.S. lawmakers warning that such actions might compromise America’s competitive advantage in the global AI arena.