US export controls are meant to keep advanced AI chips out of China, so Epoch AI compared Malaysian and Chinese customs records for the same server shipments between April 2024 and June 2025, and found a gap consistent with about $3 billion of AI chips smuggled to China through Malaysia, roughly 150,000 H100-equivalent GPUs
Epoch AI compared customs records from Malaysia and China for server shipments between April 2024 and June 2025. China recorded $3.8 billion of server imports from Malaysia, while Malaysia recorded only $0.6 billion of exports to China. This $3 billion gap is consistent with about 150,000 H100-equivalent GPUs being routed through Malaysia to China.
Verified 2026-09-27
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Mismatched customs records suggest chips are reaching China through other countries, a gap in export controls.
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