U.S. Arrests Two Chinese Nationals for Illegally Exporting Nvidia AI Chips

On August 5, 2025, the U.S. Department of Justice announced the arrest of two Chinese nationals, Chuan Geng and Shiwei Yang, both 28 and residing in California, for allegedly exporting tens of millions of dollars' worth of advanced Nvidia AI chips to China without the required export licenses. (justice.gov)

The arrests underscore the U.S. government's intensified efforts to prevent unauthorized technology transfers to China, particularly concerning advanced computing components with potential military applications. This case highlights the challenges in enforcing export controls and the broader implications for national security and international trade relations.

Background

Geng and Yang operated ALX Solutions Inc., an El Monte-based company established in 2022. Between October 2022 and July 2025, ALX Solutions allegedly conducted over 20 shipments through Singapore and Malaysia—common transshipment points for unauthorized exports to China. Payment records indicate direct financial transactions with entities in China and Hong Kong, including a $1 million payment from a China-based company in January 2024. ALX Solutions sourced over 200 Nvidia H100 chips from Super Micro Computer in San Jose, falsely declaring destinations as Singapore and Japan. One invoice alone was valued at over $28 million, but export officers found the recipient company didn’t exist at the listed address in Singapore. (justice.gov)

Legal Proceedings

Geng and Yang are charged with violating the Export Control Reform Act, a felony carrying a statutory maximum penalty of 20 years in prison. Both appeared in U.S. District Court in Los Angeles. Geng, a lawful permanent resident, was released on a $250,000 bond. Yang, who overstayed her visa, has a detention hearing scheduled for August 12. (justice.gov)

Industry Response

A spokesperson for Nvidia declined to comment on the specific case. Super Micro Computer did not immediately respond to requests for comment. (reuters.com)

Implications

The illegal export of advanced AI chips poses significant national security risks, as such technology can be used in military applications and surveillance systems. The incident underscores the challenges in enforcing export controls and the potential economic ramifications for companies involved in unauthorized exports. This case highlights ongoing tensions between the U.S. and China over technology transfer and intellectual property rights.

The arrest of Geng and Yang serves as a stark reminder of the critical importance of adhering to export control laws, especially concerning advanced technologies with potential military applications. It also highlights the need for robust enforcement mechanisms to prevent unauthorized technology transfers that could compromise national security.