DoJ Arrests Two Chinese Citizens For Unauthorised Export Of AI Microchips To China
The accused have been identified as Chuan Geng and Shiwei Yang, both aged 28.
The United States Department of Justice (DoJ) has taken into custody two Chinese citizens on charges of unlawfully exporting sensitive microchips used in artificial intelligence (AI) technologies to China without the necessary approval. The arrests, which occurred on Saturday, are part of an ongoing probe being jointly conducted by the Department of Commerce’s Bureau of Industry and Security and the Federal Bureau of Investigation (FBI), as per an official press release.
The two individuals have been named as Chuan Geng and Shiwei Yang, both 28 years of age. As per the DoJ, Geng holds the status of a lawful permanent resident in the US, whereas Yang is in the country illegally, having overstayed her visa. The duo faces allegations of breaching the Export Control Reform Act (ECRA) and could face a statutory maximum sentence of 20 years in federal prison if found guilty.
A court affidavit claims that the pair knowingly exported highly sensitive and controlled technology to China between October 2022 and July 2025. Specifically, they are accused of sending out advanced Nvidia H100 microchips—high-performance semiconductors employed in training large language models and other AI tools—without securing the mandatory licences or approvals from the US Department of Commerce. These exports were allegedly facilitated via their California-based company, ALX Solutions Inc., which was reportedly established shortly after new export regulations for such chips came into effect.
Besides the H100 chips, Geng and Yang are also reported to have exported Nvidia’s PNY GeForce RTX 4090 graphics cards, again without the required permissions, as per CNA reports. These premium graphics processing units (GPUs) are likewise covered under US export regulations owing to their potential use in defence and AI applications.
To bypass American export regulations, the accused allegedly used third-party logistics and freight-forwarding firms located in Singapore and Malaysia. As per the DoJ, this strategy was used to hide the actual destination of the shipments, which was China. Though ALX Solutions exported microchips worth millions of dollars, it reportedly did not receive direct payments from the Chinese recipients. Instead, the money was routed through companies based in Hong Kong and mainland China, including a transaction worth $1 million.
Yang was apprehended on August 2, while Geng voluntarily turned himself in to federal authorities on the same day. Both made their initial appearance before the US District Court in Los Angeles on Monday. Geng has been granted bail of $250,000, while Yang remains in custody. Her bail hearing is slated for August 12.
