U.S. Indicts Two for Illegal Shipping of Nvidia AI Chips to China

Two Chinese nationals have been apprehended by U.S. authorities for allegedly breaching export controls by shipping Nvidia’s advanced AI chips to China. The individuals, identified as Chuan Geng and Shiwei Yang, are accused of orchestrating shipments worth millions of dollars of Nvidia’s high-performance GPUs, specifically designed for artificial intelligence applications, without the necessary licenses from the U.S. Department of Commerce.

According to the U.S. Department of Justice, the activities purportedly took place from October 2022 through July 2025, with shipments passing through Singapore and Malaysia, transit points often used to avoid direct logistical routes to China and disguise the true nature of the shipments. For the shipments marked as export-restricted, neither Geng, Yang, nor their company, ALX Solutions Inc., sought or secured official export licenses as required by U.S. law.

The indictment highlights that ALX Solutions, based in El Monte, California, organized at least 21 shipments of high-value Nvidia GPUs during the stated period. Specifically, a December 2024 shipment involved falsely labeled Nvidia H100 GPUs, widely recognized for their profound capabilities in AI computing. Prosecutors revealed that instead of receiving payments from shell transit companies, ALX Solutions received substantial payments directly from entities in Hong Kong and mainland China, including a significant $1 million transaction from a China-based firm in January 2024.

Upon searching ALX Solutions’ office, authorities allegedly uncovered incriminating communications on Geng and Yang's devices, showing their intent to funnel export-controlled technology to China by way of Malaysia. The DOJ underscores the gravity of these violations, citing potential penalties of up to 20 years in prison under the Export Control Reform Act.

In response to these developments, Nvidia emphasized its adherence to U.S. export control laws, stating, "Smuggling is a nonstarter." The company assured that their distribution partners undertake rigorous compliance measures to prevent unauthorized sales and diversions, thereby ensuring adherence to legal standards governing international trade.

This case aligns with broader efforts by the U.S. to prevent the flow of cutting-edge technology to China amid ongoing technological competition. Such transactions are considered significant given their potential military applications, thereby posing a risk to national security.

The scrutiny and regulatory enforcement against tech exports to China highlight existing tensions between Washington and Beijing over technological dominance. The U.S. government has imposed numerous controls over technology exports, particularly limiting China's access to the most sophisticated chips used in AI. These regulatory measures underscore the strategic importance such technology holds and its role in national defense strategies.

The U.S. policies are mirrored by retaliatory measures from China, including its own set of export restrictions aimed at countering these actions. The geopolitical ramifications extend beyond the two nations, influencing global tech supply chains and trade dynamics.

These incidents reflect ongoing challenges and confrontations surrounding high-tech exports and intellectual property in the global arena. The U.S. has maintained its stance on restricting advanced tech sales as a measure to protect its strategic interests and continue its legacy of technological leadership.