As the US tightens export controls on high‑performance computing hardware, a thriving black market is helping advanced AI semiconductors reach China, undermining the intended technology blockade.

The FT’s Eleanor Olcott investigates how resellers are bypassing US restrictions, tracing shipments through intermediaries in Silicon Valley, Hong Kong, and Southeast Asia, and documenting the covert logistics that move chips from manufacturers to end users.

The film reveals the scale of the illicit trade, the profits for middlemen, and what the flow of chips tells us about the broader geopolitical race over artificial intelligence, highlighting how demand for training models fuels the underground market.

Analysts warn that the underground supply chain could accelerate China’s AI capabilities despite official bans, raising questions about the effectiveness of current export controls and the future of global semiconductor governance. The investigation also shows how financial institutions inadvertently facilitate payments, complicating enforcement efforts.