US Arrests Two for Smuggling Restricted Nvidia AI Chips to China

Two Chinese nationals, Chuan Geng and Shiwei Yang, have been arrested in the US for smuggling high-end Nvidia AI chips to China without necessary licenses. The pair used shipping hubs in Singapore and Malaysia to disguise the final destination of the goods, with payments received from companies in Hong Kong and mainland China. They face up to 20 years in prison.

Two Chinese nationals, Chuan Geng and Shiwei Yang, were arrested in California and charged with smuggling high-end Nvidia AI chips to China without the necessary licenses. The pair, who are 28 years old, used shipping hubs in Singapore and Malaysia to disguise the final destination of the goods. They face up to 20 years in prison for their actions.

The U.S. Justice Department announced the arrests, stating that Geng and Yang operated through a company they founded in 2022 called ALX Solutions Inc., based in El Monte. The company was allegedly used to export sensitive technology, including Nvidia's H100 AI accelerators, without obtaining the required government licenses. The shipments took place from October 2022 through July 2025, violating U.S. export laws that require special licenses to ship sensitive technology to certain countries, including China [1].

The U.S. has been tightening export controls on semiconductors and chipmaking equipment to limit China's access to advanced technology. Nvidia's H100 chips, which are used in artificial intelligence applications, were among the products being smuggled. These chips are highly valuable due to their ability to power complex AI systems and have potential military applications [2].

The arrests highlight the growing scrutiny over AI chip exports and the U.S.'s broader campaign to limit China's access to high-performance computing technology. The investigation is ongoing, and further charges could follow depending on what else is uncovered about the network behind the illegal shipments [1].

Nvidia, the manufacturer of the H100 chips, has stated that it primarily sells its products to well-known partners who help ensure compliance with U.S. export control rules. The chipmaker also noted that even relatively small exporters and shipments are subject to thorough review and scrutiny, and any diverted products would have no service, support, or updates [4].

The smuggling of advanced microchips has become a growing concern in Washington. According to a report from the Financial Times last month, at least $1 billion worth of Nvidia's chips entered China after Donald Trump tightened chip export controls earlier this year [4].

The U.S. Department of Commerce's Bureau of Industry and Security and the FBI are continuing to investigate the matter. The case serves as a reminder of the stringent measures the U.S. is taking to protect its advanced technology from being illicitly exported to China.

References:

[1] https://www.businessupturn.com/usa/two-chinese-nationals-arrested-for-smuggling-nvidia-ai-chips-to-china/85260/
[2] https://economictimes.indiatimes.com/news/international/us/nvidia-ai-chips-smuggling-two-chinese-nationals-arrested-in-california/articleshow/123127527.cms
[3] https://www.scmp.com/news/world/united-states-canada/article/3320877/us-charges-2-chinese-nationals-sending-nvidia-ai-chips-china?module=top_story&pgtype=homepage
[4] https://www.cnbc.com/2025/08/06/two-chinese-nationals-charged-for-illegally-shipping-nvidia-ai-chips-to-china.html