Two Chinese nationals residing in California have been arrested and charged with violating U.S. export control laws by allegedly shipping advanced microchips used in artificial intelligence to China. The Justice Department announced the case against Chuan Geng, 28, and Shiwei Yang, 28, who are accused of sending tens of millions of dollars worth of Nvidia AI chips to China without the necessary government licenses.
Key Takeaways
Two Chinese nationals, Chuan Geng and Shiwei Yang, arrested in California.
Accused of illegally exporting Nvidia AI chips, including H100 accelerators, to China.
Allegedly used a California-based company, ALX Solutions, to facilitate the shipments.
Charges include violating the Export Control Reform Act, with potential penalties of up to 20 years in prison.
The scheme involved over 20 shipments routed through Singapore and Malaysia to evade U.S. laws.
The Allegations
Chuan Geng and Shiwei Yang are accused of knowingly and willfully exporting sensitive technology, including Nvidia's powerful AI chips, to China between October 2022 and July 2025. Their company, ALX Solutions, allegedly circumvented U.S. export restrictions by sending these chips to freight-forwarding companies in Singapore and Malaysia, which then forwarded them to China. This method was reportedly used to conceal the illegal shipments and evade U.S. laws.
Evidence and Legal Ramifications
Federal prosecutors stated that law enforcement seized phones belonging to Geng and Yang during a raid on ALX Solutions. These phones allegedly contained incriminating communications detailing the scheme to ship export-controlled chips through Malaysia to China. If convicted of violating the Export Control Reform Act, both defendants face a maximum penalty of 20 years in federal prison.
Broader Context and Geopolitical Tensions
This incident highlights the ongoing geopolitical tensions between the U.S. and China, particularly concerning advancements in artificial intelligence technology. The U.S. has been progressively tightening restrictions on semiconductor exports to China to curb its progress in AI. The charges against Geng and Yang underscore the U.S. government's commitment to enforcing these export controls, especially for high-performance chips like Nvidia's H100 accelerators, which are crucial for developing advanced AI applications.
Sources
U.S. charges Chinese nationals with illegally exporting chips to China, Yahoo News Canada
