Authorities in the United States have charged two Chinese citizens with allegedly exporting tens of millions of dollars’ worth of advanced Nvidia chips to China in violation of U.S. export controls. The individuals, Chuan Geng and Shiwei Yang, are accused of knowingly and willfully shipping graphic processing units (GPUs) used for artificial intelligence without proper authorization.
The U.S. Department of Justice stated that the two men, both 28 years old, orchestrated at least 21 shipments through their El Monte, California-based company, ALX Solutions Inc., between October 2022 and July 2025. These shipments were directed to companies in Singapore and Malaysia. According to the Justice Department, one such shipment in December 2024 included Nvidia H100 GPUs—described as the most powerful chips available—which were falsely labeled and lacked the required license from the U.S. Department of Commerce.
Prosecutors allege that ALX Solutions received payments from firms in Hong Kong and China, including a $1 million payment from a Chinese company in January 2024. This was reportedly not from the companies that ultimately received the shipments. A recent search of ALX Solutions’ office and the phones of Geng and Yang uncovered “incriminating communications,” including discussions about routing chips through Malaysia to bypass U.S. export restrictions.
If convicted under the Export Control Reform Act, Geng and Yang could face a maximum penalty of 20 years in prison. Al Jazeera has been unable to locate the accused’s lawyers for comment.
Nvidia, based in Santa Clara, California, issued a statement emphasizing that “smuggling is a nonstarter.” The company said it primarily sells its products to well-known partners, including original equipment manufacturers (OEMs), who help ensure compliance with U.S. export control rules. A spokesperson noted that even small exporters and shipments undergo rigorous review, and any diverted products would lose access to service, support, or updates.
The U.S. government has imposed restrictions on the export of advanced chips to China amid ongoing technological competition between Washington and Beijing. Officials have argued that these measures, many introduced during the previous administration, are necessary to protect national security. In response, China has implemented its own export controls against the U.S., accusing Washington of undermining global trade and abusing its technological dominance.
Last month, Nvidia CEO Jensen Huang announced that the U.S. had agreed to lift the ban on selling the H20 GPU to China after discussions with former President Donald Trump. The H20, designed specifically for the Chinese market and less powerful than the H100, was described by Huang as a move that would encourage nations worldwide to choose American technology for their AI models.
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