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Chinese Nationals Arrested Over Illegal AI Chip Exports to China

The Justice Department alleges they funneled high-end GPUs through Southeast Asian transshipment points in violation of U.S. export controls.

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Nvidia logo is seen in this illustration taken, January 27, 2025. REUTERS/Dado Ruvic/Illustration/File Photo

Overview

  • Chuan Geng of Pasadena and Shiwei Yang of El Monte are charged under the Export Control Reform Act with up to 20 years in prison for each count.
  • Prosecutors accuse their company ALX Solutions Inc. of making at least 21 unlicensed shipments of Nvidia H100 and other GPUs between October 2022 and July 2025.
  • Law enforcement seized their office phones after a raid that uncovered messages detailing plans to route controlled chips through Singapore and Malaysia.
  • Geng surrendered and was released on a $250,000 bond while Yang remains detained pending an August 12 hearing, with arraignment set for September 11.
  • Officials say the case underscores heightened export restrictions on AI hardware and has prompted calls for measures like chip-level tracking to prevent smuggling.