China Economic Review
Charting China’s changing economic terrain · Since 1990

Nvidia employees charged with smuggling chips to China

August 26, 2026



An Nvidia manager and team have been charged with smuggling advanced AI chips into China, reports the Financial Times.  This is the first known indictment of a worker at the US chipmaker over alleged illegal exports. 

Taiwan’s Keelung District Prosecutors’ Office charged nine people, including employees of server maker Super Micro Computer, on Monday with illegally selling high-end AI servers to Chinese customers. 

Many of Nvidia’s chips and servers are made on the island. They described a Taiwan-based senior manager at Nvidia surnamed Zhang as the “central figure” in a scheme involving 130 of the chipmaker’s flagship B300 servers. The B300 is a popular server for training AI models and contains Nvidia’s advanced chips. The servers are subject to US export controls as Washington tries to constrain China’s ability to develop cutting-edge AI.

Huawei, HP settle Wi-fi patent dispute with cross-licensing deal

August 26, 2026

China’s Huawei and US personal computer giant HP have announced that they had reached a deal to license each other’s Wi-fi patents, reports the South China Morning Post.

The two companies signed a multi-year global patent cross-licensing agreement, which granted HP the right to use certain Huawei Wi-fi patents on its PCs for a fee.

The agreement came after Huawei filed a lawsuit against HP in 2025 over Wi-fi 6 patents, but the disputes were resolved in November last year after the American PC maker became a licensee of the patent pool of Italian intellectual property management firm Sisvel, gaining access to some of the contested patents.

Brazil splits new supercomputer project between US, China

August 21, 2026

Brazil’s government has announced investments of about 2.3 billion reais ($444.2 million) to ‌bolster its artificial intelligence ecosystem, splitting projects between US and Chinese companies, reports Reuters.  The move underscores its effort to navigate relations with both powers.

Just over half the total, 1.3 billion reais, will fund a supercomputing infrastructure project in Rio de ​Janeiro developed in partnership with China’s Huawei Technologies and iFlytek. President Luiz Inacio Lula da Silva’s ​government said the infrastructure will be used primarily to develop large language models for ⁠general and sector-specific applications.

Separately, about 1 billion reais will be allocated through a tender for a supercomputer ​that Brazil expects to rank among the world’s 10 most powerful AI processing machines. Government officials, speaking on condition of anonymity, said they expect US chipmaker Nvidia to win the tender. Science and ​Technology Minister Luciana Santos told the Folha de S. Paulo newspaper last week that she anticipated the ​company would be the supplier.

Unitree Robotics shares rise 629% on Shanghai debut

August 21, 2026

Shares of Chinese humanoid robot developer Unitree Robotics soared 629% on its Shanghai trading debut on Wednesday, reports Caixin. The rise marks the largest first-day gain for a new listing so far this year.

The company, officially known as Yushu Technology, raised RMB 6.1 billion ($905 million), overshooting its initial target of RMB 4.2 billion. Shares opened at RMB 1,100 a share on the STAR Market, well above its initial public offering price of RMB 150.8. 

The debut, which propelled the company’s market valuation to RMB 61 billion, set a new valuation benchmark for China’s booming robotics industry as dozens of domestic peers prepare for their own public listings.

Alibaba to sell Lingxi Games for more than $2 BN

August 18, 2026

Alibaba is ‌expected to reap more than $2 billion from the sale of its game developer unit Lingxi Games to private equity firm Trustar Capital, reports Reuters.

Trustar said late on Monday it had reached a transaction agreement with Alibaba to acquire the tech giant’s entire stake in Lingxi.

Alibaba and Trustar reached ​a formal agreement after several rounds of talks, according to an internal memo sent to Lingxi staff on Monday by the ​game developer’s CEO Zhou Bingshu and reviewed by Reuters. Zhou said in the memo that he and Lingxi’s management team would continue to lead the company, signalling continuity in the studio’s operations following the ownership change.