Two Chinese Nationals Arrested for Illegally Shipping Nvidia AI Chips to China

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Two Chinese nationals, Chuan Geng and Shiwei Yang, have been arrested and charged with illegally shipping tens of millions of dollars’ worth of advanced Nvidia AI chips to China. The US Justice Department announced the charges on Tuesday, alleging that Geng and Yang exported the chips and other technology to China from October 2022 through July 2025 without the required licenses from the US Commerce Department.

According to the affidavit, Geng and Yang’s company, ALX Solutions, was founded in 2022, shortly after the US imposed sweeping export controls on technology to China. The company allegedly used shipping and freight forwarding companies in Singapore and Malaysia as transshipment points to send the chips to China. Records show that ALX Solutions bought over 200 Nvidia H100 chips from Super Micro Computer, declaring that the customers were in Singapore and Japan, when in fact the chips were destined for China.

The investigation revealed that ALX Solutions received payments from companies in China and Hong Kong, including a $1 million payment in January 2024. The Justice Department charged Geng and Yang with violating US export control regulations, which require licenses for the shipment of advanced technology to China. The charges carry significant penalties, and the defendants face serious consequences if convicted.

Nvidia and Super Micro Computer, the companies involved in the shipment of the chips, have responded to the allegations. Nvidia stated that diverted products have “no service, support or updates,” and that the company primarily sells its products to well-known partners who help ensure compliance with US export control rules. Super Micro Computer said it is “firmly committed to compliance with all US export control regulations” and cooperated with authorities in the investigation.

Geng and Yang appeared in federal court in Los Angeles on Monday, with Geng being released on $250,000 bond. Yang, who overstayed her visa, has a detention hearing scheduled for August 12. The case highlights the US government’s efforts to prevent the unauthorized export of advanced technology to China, and the potential consequences for individuals and companies that violate export control regulations.

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