Just because the US government says that NVIDIA isn't allow to sale their most advanced AI chips to China doesn't mean that China won't be able to get their hands on those chips. Its a widely produced and commercially available product and China has both the contacts and the money to buy them from third parties aka the black market. China of course will have to pay a premium on those chips but for China's AI efforts its well worth it.
It is a matter of degrees of separation.
1) You can sanction China in the 1st degree.
2) So Chinese firms buy from re-sellers in Japan in the 2nd degree.
3) If a local governments allied to US like Japan cracks down then Japanese re-sellers can sell to Thailand who then sell to China in the 3rd degree of separation.
Now the 2nd degree of separation doesn't include only Japan but many nations. And then even more nations in the third degree when re-sellers radiate to avoid local bans. Pretty soon you'll have to involve the whole world to keep these chips from reaching China at which point you'll probably wreck Nvidia's international business.
Under US law, if enforced to the fullest Nvidia theoritically needs to not only check who they sell to but also who their customers sell to and so on and so forth down the rabbit hole.
At some point, you'll just need to develop a blind eye if you want to sell globally.
And we haven't gotten into gray areas where people smuggle directly to China to profit from cutting out middle men in the 2nd and 3rd degrees of separations or simply buying currently unbanned devices that contain Nvidia chips.