This is the biggest irony in the whole Alice Huang / Nvidia saga: the Chinese government actually doesn't want Nvidia chips and is actively keeping them out of the country.
Last year it even ordered Alibaba and ByteDance to cancel their Nvidia orders and sent customs teams to ports to inspect every advanced chip that came in.
And currently 600,000 Nvidia H200 devices are stuck in Hong Kong because Beijing won't let them into the country. Nvidia also specifically framed this as a threat to its business in its most recent annual report to the SEC: "The Chinese government encouraged customers to purchase from our competitors in China and discouraged customers from purchasing, importing or using our data products."
Why is China doing this? Because every Nvidia chip that a Chinese company buys is one that Huawei or Cambricon don't sell, and local chips can only catch up if people actually buy them (which means money for R&D, etc.).
Which means the idea that Chinese intelligence is running honey traps to get more Nvidia chips into China gets the whole thing exactly backwards.
In fact, Mega Speed - Alice Huang's company - appears to have been a backlash against official Chinese policy: a private-sector bypass of these Chinese government efforts to undercut Nvidia. As has been widely reported - including in the Western media - MegaSpeed has built data centers in Southeast Asia and leased their computing power to Alibaba, which the New York Times called "a backdoor way to get access" to Nvidia chips.
It's a backdoor not only - allegedly - around Washington's export controls, but also around China's own efforts to wrest its companies from Nvidia.
I don't believe the Chinese government was too keen on this: it would make almost no sense for them to implement myriad domestic measures to prevent Alibaba from using Nvidia chips, but at the same time have their top spy agency help that same Alibaba get Nvidia chips through the back door in Southeast Asia.