Two Chinese immigrants living in California have been charged with smuggling AI technology to China, the Justice Department announced.
Chuan Geng, 28, of Pasadena, Calif., and Shiwei Yang, 28, of El Monte, Calif, are accused of violating export controls by sending millions of dollars’ worth of Nvidia chips to their native country. Geng is a lawful permanent resident; Yang is an illegal alien who overstayed her visa.
They were charged under the Export Control Reform Act, and each faces up to 20 years in prison if convicted.
Chinese smugglers charged
From October 2022 to July 2025, the defendants “knowingly and willfully” sent restricted technology to China, including the “most powerful GPU chip on the market,” which is “designed specifically for AI applications,” such as “to develop self-driving cars, medical diagnosis systems, and other AI-powered applications.”
The first Trump administration started requiring licenses for the computer chips that Geng and Yang were exporting shortly before they started their company, El Monte-based ALX Solutions.
The police raided the company’s office and seized the phones of the defendants, which showed that they discussed evading U.S. export controls by sending computer chips through Malaysia.
ALX Solutions was never paid by the companies they claimed to be exporting their goods to, but they were paid by entities based in Hong Kong and China, one of which sent them $1 million.
The defendants made at least 20 shipments to Singapore and Malaysia, “which commonly are used as transshipment points to conceal illegal shipments to China,” the DOJ noted.
National security
California-based Nvidia is a key player in the AI sector and currently ranks as the most valuable company in the world.
“This case demonstrates 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,” an Nvidia spokesperson told the New York Post.
“Even relatively small exporters and shipments are subject to thorough review and scrutiny, and any diverted products would have no service, support, or updates.”
This case is one example of how mass immigration undermines U.S. national security. While illegal immigration gets the most attention, those who come to the U.S. the right way are not necessarily good people. Notably, one of the Chinese nationals in this incident has a green card.
President Trump has prioritized winning the AI race with China, and key to that effort is revitalizing the semiconductor industry in the United States.
Trump announced this week that he will levy 100% tariffs on foreign chips, with exemptions for companies that invest in America such as Nvidia.
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Author: Matthew Boose
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