This seems like an attempt to play lawyerball and find larger significance than exists in a fact. For instance, the US recognizes Taiwan passports for visitors, those are not China passports... and they treat visitors differently, see how Taiwan is on this list and China is not: https://www.cbp.gov/sites/default/files/assets/documents/201...
So "by default" the US already "officially" recognizes Taiwan as "not China." I think the mistake here is confusing de facto with "officially."
(To put it another way: even assuming your point that "technically" the US could try to prosecute Nvidia for this and a court would get the question of "is this China" - but do you actually think the US will? Or will they continue to walk the same line they've walked for decades in the same situation?)
So "by default" the US already "officially" recognizes Taiwan as "not China." I think the mistake here is confusing de facto with "officially."
(To put it another way: even assuming your point that "technically" the US could try to prosecute Nvidia for this and a court would get the question of "is this China" - but do you actually think the US will? Or will they continue to walk the same line they've walked for decades in the same situation?)