Authorities in the United States have charged two Chinese citizens with shipping tens of millions of dollars’ worth of advanced Nvidia chips to China in breach of export controls. Chuan Geng and Shiwei Yang are alleged to have “knowingly and willfully” exported the graphic processing units (GPUs) used to power artificial intelligence without authorization from October 2022 to July 2025, the US Department of Justice said on Tuesday.
The exports included a December 2024 shipment of Nvidia H100 GPUs, described as the most powerful chip on the market, that was “falsely labelled” and had not obtained the necessary license from the US Department of Commerce. According to prosecutors, ALX Solutions Inc, the California-based company run by Geng and Yang, received payments from firms in Hong Kong and China, including a $1m sum from a China-based company in January 2024, rather than the companies that accepted the shipments.
Prosecutors said a search of ALX Solutions’s office and Geng and Yang’s phones last week revealed “incriminating communications,” including communications about shipping chips to China through Malaysia to evade US export restrictions. Geng and Yang face a maximum penalty of 20 years in prison if convicted under the Export Control Reform Act.
The US government has banned the export of the most advanced chips to China amid a heated battle for technological supremacy between Washington and Beijing. US officials have claimed that restrictions are needed to safeguard national security. China has hit back with its own export controls against the US, accusing Washington of undermining global trade and abusing its dominance in tech.
Santa Clara, California-based Nvidia said the case showed that “smuggling is a nonstarter.” “We primarily sell our products to well-known partners, including OEMs [original equipment manufacturers], who help us ensure that all sales comply with US export control rules,” a company spokesperson said. “Even relatively small exporters and shipments are subject to thorough review and scrutiny, and any diverted products would have no service, support, or updates.”
The company’s statement highlights the importance of compliance with US export controls and the potential consequences of violating these regulations. The case against Geng and Yang serves as a reminder of the US government’s commitment to enforcing these controls and protecting national security.