United States Charges Two Chinese Citizens for Export Control Violations on AI Chips
USA authorities have accused two Chinese nationals, Chuan Geng and Shiwei Yang, of violating export controls by sending tens of millions of dollars’ worth of advanced Nvidia chips to China from their California-based company, ALX Solutions Inc.
Geng and Yang, both 28, are charged with unlawfully exporting graphics processing units (GPUs) used for artificial intelligence without the necessary authorization from October 2022 to July 2025, as reported by the US Department of Justice.
According to the Department of Justice, the defendants arranged for at least 21 shipments through ALX Solutions to companies in Singapore and Malaysia, falsifying a shipment of Nvidia H100 GPUs – considered to be the most powerful chips available – without obtaining the required US Commerce Department license.
The investigation found that ALX Solutions received payments from Hong Kong and China-based companies, including a $1 million payment in January 2024, rather than the entities receiving the shipments. A search of ALX Solutions and the accused’s phones reveled “incriminating communications,” including discussions on shipping chips to China via Malaysia to dodge US export restrictions.
If convicted, Geng and Yang could face up to 20 years of imprisonment under the Export Control Reform Act.
Al Jazeera has yet to obtain comments from the lawyers representing the accused.
Nvidia, a company based in Santa Clara, California, stated that “smuggling is not an option.”
“We mainly supply our products to well-known partners, including OEMs, who assist us in ensuring compliance with US export control laws,” a company spokesperson said. “Even small exporters and shipments are subject to thorough inspection and scrutiny, and any diverted products would not receive service, support, or updates.”
The US has banned the export of the most advanced chips to China amid a conflict over technological dominance between Washington and Beijing. US officials argue that these restrictions are essential for national security.
China, which has retaliated with its own export controls against the US, accuses Washington of disrupting global trade and misusing its technological dominance.
Last month, Nvidia’s CEO, Jensen Huang, revealed that Washington had lifted its ban on selling the H20 GPU to China after discussions with US President Donald Trump. Huang said that this would encourage nations worldwide to prefer America.
Geng and Yang, both 28, are charged with unlawfully exporting graphics processing units (GPUs) used for artificial intelligence without the necessary authorization from October 2022 to July 2025, as reported by the US Department of Justice.
According to the Department of Justice, the defendants arranged for at least 21 shipments through ALX Solutions to companies in Singapore and Malaysia, falsifying a shipment of Nvidia H100 GPUs – considered to be the most powerful chips available – without obtaining the required US Commerce Department license.
The investigation found that ALX Solutions received payments from Hong Kong and China-based companies, including a $1 million payment in January 2024, rather than the entities receiving the shipments. A search of ALX Solutions and the accused’s phones reveled “incriminating communications,” including discussions on shipping chips to China via Malaysia to dodge US export restrictions.
If convicted, Geng and Yang could face up to 20 years of imprisonment under the Export Control Reform Act.
Al Jazeera has yet to obtain comments from the lawyers representing the accused.
Nvidia, a company based in Santa Clara, California, stated that “smuggling is not an option.”
“We mainly supply our products to well-known partners, including OEMs, who assist us in ensuring compliance with US export control laws,” a company spokesperson said. “Even small exporters and shipments are subject to thorough inspection and scrutiny, and any diverted products would not receive service, support, or updates.”
The US has banned the export of the most advanced chips to China amid a conflict over technological dominance between Washington and Beijing. US officials argue that these restrictions are essential for national security.
China, which has retaliated with its own export controls against the US, accuses Washington of disrupting global trade and misusing its technological dominance.
Last month, Nvidia’s CEO, Jensen Huang, revealed that Washington had lifted its ban on selling the H20 GPU to China after discussions with US President Donald Trump. Huang said that this would encourage nations worldwide to prefer America.
