Overview

• Chuan Geng and Shiwei Yang, co-founders of ALX Solutions, were arrested on August 5 and charged under the Export Control Reform Act for exporting tens of millions of dollars’ worth of Nvidia GPUs to China without Commerce Department licenses.
• Federal prosecutors allege the duo routed over 20 shipments through Singapore and Malaysia between October 2022 and July 2025, mislabeling crates and receiving payments from Hong Kong and Chinese firms, including a $1 million transfer in January 2024.
• Agents executing a search warrant at ALX Solutions’ El Monte office seized the defendants’ phones, uncovering communications about evading export rules and prompting investigators to probe broader smuggling networks.
• Geng, a lawful permanent U.S. resident, was released on a $250,000 bond; Yang, who overstayed her visa, remains detained pending a detention hearing on August 12 and an arraignment on September 11.
• The case underscores challenges in policing advanced semiconductor flows and bolsters U.S. efforts to curb China’s access to cutting-edge AI hardware as tech rivalry intensifies.