US Indicts Chinese Nationals for Illegally Exporting Nvidia Chips to China

U.S. authorities have charged two Chinese nationals, Chuan Geng and Shiwei Yang, with illegally exporting advanced Nvidia graphic processing units (GPUs) worth tens of millions of dollars to China, in violation of U.S. export control laws. The Department of Justice (DOJ) announced on Tuesday that the accused operated through their California-based company, ALX Solutions Inc, to organize at least 21 unauthorized shipments between October 2022 and July 2025. These shipments, routed through Singapore and Malaysia, included powerful Nvidia H100 GPUs, which are among the most advanced chips available and are vital for artificial intelligence (AI) applications.

According to DOJ officials, the GPUs were falsely labeled, and the accused failed to obtain the necessary export licenses from the U.S. Department of Commerce. Export documents and communications suggest that the accused knowingly and willfully circumvented export restrictions. In one significant instance, a shipment of H100 chips was sent in December 2024 without proper authorization. Payments for the illegal exports were traced to firms based in China and Hong Kong, including a $1 million transaction in January 2024 from a China-based entity, rather than from the companies listed as recipients.

Federal prosecutors stated that a recent search of ALX Solutions’s office, as well as the phones of Geng and Yang, uncovered incriminating messages discussing methods to evade U.S. export laws, such as routing shipments through Malaysia. The DOJ has indicated that if found guilty under the Export Control Reform Act, the accused could face up to 20 years in prison.

Nvidia, the U.S.-based chip manufacturing giant whose products were central to the smuggling operation, responded by condemning the alleged actions. The company emphasized its commitment to compliance, stating that it primarily sells products through authorized partners and OEMs (original equipment manufacturers) who help ensure adherence to U.S. export regulations. Nvidia also noted that even small shipments undergo thorough vetting and that diverted or unauthorized products would not receive service, updates, or support.

The case comes amid increasing U.S.-China tensions over technology and trade. The U.S. government has imposed strict export controls on advanced semiconductors and AI chips to China, citing national security concerns and the need to maintain technological supremacy. These controls were largely introduced under former President Joe Biden’s administration and have included bans on the export of high-performance chips like the Nvidia H100 to Chinese entities.

In retaliation, China has introduced its own export restrictions and has accused Washington of weaponizing technology and undermining global trade norms. Beijing argues that the U.S. is using its dominant position in the tech industry to suppress competition and exert geopolitical pressure.

In a recent development, Nvidia CEO Jensen Huang revealed that the U.S. government had reversed its ban on the sale of the Nvidia H20 GPU to China. The H20, a chip designed specifically for the Chinese market and less powerful than the H100, will now be allowed for export following discussions with former President Donald Trump. Huang suggested that this decision would help promote the adoption of American AI solutions globally and allow the U.S. to maintain leadership in AI technology without completely severing ties with foreign markets.