Two Chinese nationals have been arrested and charged with illegally exporting millions of dollars’ worth of cutting-edge artificial intelligence (AI) chips from the United States to China, the U.S. Department of Justice (DOJ) announced on Tuesday. The case underscores mounting tensions between Washington and Beijing over the control and flow of advanced technology, particularly in the AI sector.
According to court documents, California-based ALX Solutions, allegedly managed by Chuan Geng and Shiwei Yang, illegally shipped Nvidia’s powerful H100 and GeForce RTX 4090 graphics processing units (GPUs)—chips subject to U.S. export restrictions—to China via third-party shipping hubs in Singapore and Malaysia, over the past three years. The firm failed to secure mandatory export licenses and allegedly falsified documentation to disguise the shipments.
The DOJ stated that Geng handled finances, Yang served as secretary, and both exercised full control over ALX’s operations. Yang was reportedly residing in the U.S. illegally after overstaying her visa, while Geng was a permanent resident of California. They were arrested over the weekend and appeared in federal court in Los Angeles on Monday. If convicted, they could face up to 20 years in prison.
Investigations revealed that ALX routed shipments through Southeast Asia to obscure their final destination in China. Despite the lack of legitimate payment from shipping firms, the company received large transfers—including a $1 million payment from a Chinese company in early 2024. In one instance, U.S. authorities found that ALX falsely listed a non-existent Singapore-based firm as the end-user of a shipment worth $28.4 million.
Nvidia responded to the case by reiterating its strict compliance with U.S. export controls and warning that diverted products receive no support or service. Super Micro Computer, another firm named in the documents, also affirmed its cooperation with the investigation.
Broader Implications: Talent Return and Tech Acquisition
This case is part of a much larger picture that IJ-Reportika has been closely monitoring. In our special report “The Chinese Global Brain Turning Back to Home”, we explored how China has been rapidly attracting top global talent—especially in AI and computer science—back to its elite universities and research institutions.
The report examines how high-profile returnees, many with experience in U.S. tech firms and academic institutions, are now leading strategic research efforts within China. This legitimate talent repatriation effort runs in parallel with more covert operations like tech smuggling and industrial espionage—both aimed at fast-tracking China’s goal of global technological dominance.
As geopolitical competition intensifies, the boundaries between talent mobility, technology transfer, and national security are becoming increasingly blurred.
