There are a number of ways that this can happen. It's important to state that there are different types of goods here. There's been a lot of press around, say, a company like Texas Instruments, which has very cheap calculator parts. They're important for military goods, but they're very difficult to control.
There's a separate category, one that I spoke about in the introduction, like Vectrawave, which makes highly specialized and very expensive chips, or something more in the middle, like Nvidia, which makes relatively expensive chips that are relatively rare. They're very important for these advanced types of machines. Those more specialized categories are the ones that it is best to focus on.
What's happening is that you're not shipping these things directly to Russia from Canada, the United States or Europe. They're being shipped elsewhere, and often not actually to Hong Kong. Hong Kong doesn't release its customs records, and there's no way to access them, so we don't know exactly where they're coming from. They might be in several different places going around the world. What's important here is that certain companies have made it clear that unless governments crack down on them and, essentially, take steps to deter and enforce regulations against them, they're not going to do anything.
Recently, Nvidia's leadership gave an example that if the speed limit is 75 and they're going at 65, they're not breaking the law, and they're going to do it. That was in reference to them sending extremely advanced GPUs to China. China is then using those to advance its AI. That's the attitude you're getting from many businesses in North America and Europe. They are saying, “If you guys don't stop us from doing this, we're going to do it to the extent that we're able to do it.”
Right now, Canadian and American companies can send their goods to different places. They can do a few check marks. There was a great example we talked about in our report of a New York company that asked, through email, a man, a Russian citizen who was based in Hong Kong, to confirm that he didn't plan to send its advanced technology to Russia. He wrote in an email, “I will not send this to Russia.” He was sent a bunch of OLED displays that can be used in scopes for weapons.
There's that kind of example. They're going to do the minimum. Increases are needed on due diligence requirements, and enforcement against those who sort of put their heads in the sand like ostriches and don't do what they're supposed to do when it comes to really making sure their supply chains and distributors are doing what they're supposed to do.