TLDR: Two Chinese nationals, Chuan Geng and Shiwei Yang, both 28, have been arrested and charged with illegally exporting tens of millions of dollars’ worth of sensitive AI-specific microchips, including high-end Graphic Processing Units (GPUs), to China. Operating through their California-based company, ALX Solutions Inc., they allegedly shipped these advanced components without the required U.S. Department of Commerce licenses, often using transshipment points in Singapore and Malaysia to obscure the final destination. They face up to 20 years in prison if convicted.
Federal authorities have announced the arrest of two Chinese nationals, Chuan Geng and Shiwei Yang, both 28, on charges of illegally exporting advanced microchips crucial for artificial intelligence (AI) applications to China. The duo allegedly funneled tens of millions of dollars’ worth of these sensitive components, specifically high-end Graphic Processing Units (GPUs) including Nvidia H100 AI accelerators, without obtaining the necessary licenses from the U.S. Department of Commerce.
Geng, a lawful permanent resident, and Yang, an illegal alien who overstayed her visa, are accused of operating their scheme through ALX Solutions Inc., an El Monte, California-based company. According to the criminal complaint, the company was established shortly after the Commerce Department implemented new licensing requirements for such advanced microchips, suggesting an intent to circumvent export controls.
Between October 2022 and July 2025, ALX Solutions Inc. allegedly conducted more than 20 shipments of these powerful GPUs from the United States to China. To conceal the true destination, the defendants reportedly utilized logistics firms in Malaysia and Singapore as transshipment points. These GPUs are described as among the ‘most powerful GPU chips on the market,’ vital for modern computing, data centers, self-driving cars, and advanced medical diagnosis systems.
Investigations revealed that ALX Solutions Inc. did not receive payments directly from the purported export recipients in transshipment countries. Instead, the company received numerous payments from entities based in Hong Kong and China, including a significant $1 million payment from a China-based company in January 2024.
Both Geng and Yang have been charged with violating the Export Control Reform Act, a felony that carries a statutory maximum penalty of 20 years in federal prison. Geng surrendered to authorities, while Yang was arrested. Geng has since been released on a $250,000 bond. Yang’s detention hearing is scheduled for August 12, with arraignment set for September 11. Neither has yet entered a plea.
Also Read:
- U.S. Government to Receive 15% Revenue Share from Nvidia and AMD’s AI Chip Sales to China
- Key Developments in Tech and AI: TSMC Espionage, Intel Leadership, Tesla’s Dojo, and Generative AI’s Geopolitical Impact
Evidence gathered during the investigation includes a search of ALX Solutions’ office and the seizure of phones belonging to Geng and Yang, which reportedly contained incriminating communications detailing their efforts to ship export-controlled chips to China via Malaysia to evade U.S. export laws. This case underscores the U.S. government’s intensified focus on enforcing technology export controls to safeguard national security interests concerning sensitive technologies.
