They didn’t sold the chips directly to China, they sold them to Megaspeed and they sold the compute to China.
It looks like there's quite a bit of them that made their way directly to China, and that they knew that was where they would eventually end up.
I've heard rumours that 20-40% of Nvidia's revenue was coming from sanctioned chips that make their way into Chinese data centres. If true, it's not small potatoes.
Wilful blindness is not a valid defense