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U.S. authorities have filed charges against two Chinese nationals accused of unlawfully shipping tens of millions of dollars’ worth of high-end Nvidia chips to China, in violation of federal export controls.
Chuan Geng and Shiwei Yang, both aged 28, are alleged to have “knowingly and willfully” exported advanced graphics processing units (GPUs) critical for powering artificial intelligence technologies without obtaining the required authorization, according to a statement released Tuesday by the U.S. Department of Justice. The illegal exports allegedly occurred between October 2022 and July 2025.
Prosecutors claim that Geng and Yang operated through their company, ALX Solutions Inc, based in El Monte, California. Export documentation reportedly shows the pair coordinated at least 21 shipments to companies located in Singapore and Malaysia—routes that were allegedly used to mask the chips’ final destination in China.
Among the shipments was a December 2024 consignment of Nvidia’s top-tier H100 GPUs, which prosecutors described as the most powerful chips currently available. Authorities allege that the shipment was “falsely labeled” and lacked the necessary export license from the U.S. Department of Commerce.
Further investigation revealed that the company received payments not from the firms in Singapore or Malaysia to whom the chips were shipped, but rather from entities in Hong Kong and mainland China—including a $1 million transaction in January 2024 from a China-based company.
Federal agents reportedly discovered “incriminating communications” during a search of ALX Solutions’s premises and the phones of the two accused last week. These communications allegedly included discussions about routing GPU shipments through Malaysia as a method of evading U.S. export restrictions on sensitive technology.
Geng and Yang now face charges under the Export Control Reform Act, which carries a maximum sentence of 20 years in prison upon conviction.
As of publication, Al Jazeera has been unable to locate legal representatives for the defendants. Meanwhile, Nvidia, headquartered in Santa Clara, California, responded to the charges by reaffirming its commitment to compliance with U.S. export regulations.
“Smuggling is a nonstarter,” a company spokesperson said. “We primarily sell our products to reputable partners, including OEMs [original equipment manufacturers], who help ensure that all sales align with U.S. export control laws. Even relatively small exporters and shipments undergo strict scrutiny, and diverted products are denied service, support, and software updates.”
The United States has placed sweeping restrictions on the export of cutting-edge AI chips to China as tensions between Washington and Beijing escalate over technological dominance.
U.S. officials argue that the export bans—many of which were enacted under President Joe Biden’s administration—are necessary to protect national security and prevent the misuse of American-made technology.
China has retaliated with its own set of export controls targeting the United States and has accused Washington of misusing its technological edge to manipulate global trade norms and stifle competition.
In a development last month, Nvidia CEO Jensen Huang revealed that the U.S. government had agreed to lift its export ban on the company’s H20 GPU, a product developed specifically for the Chinese market and considered less powerful than the H100.
Huang stated that the reversal followed direct discussions with U.S. President Donald Trump and expressed hope that the move would prompt “nations worldwide to choose America” as the preferred source for their AI infrastructure.
