Two Chinese nationals have been arrested in California for illegally exporting advanced AI chips, including Nvidia’s high-end H100 processors, to China without proper U.S. government authorisation. The U.S. Justice Department announced the arrests of 28-year-old Chuan Geng from Pasadena and 28-year-old Shiwei Yang from El Monte. According to the criminal complaint, the two individuals operated through a company they founded in 2022 called ALX Solutions Inc., based in El Monte. Their alleged export activity took place from October 2022 through July 2025, violating U.S. export laws that require special licenses to ship sensitive technology to certain countries, including China.
The charges come as the U.S. government intensifies efforts to block the flow of advanced semiconductors and AI-related technologies to China amid rising geopolitical tensions. The Nvidia H100 chips in question are highly valuable due to their ability to power complex artificial intelligence systems. These processors are seen as critical not only to commercial AI development but also to national security because of their potential military applications. After the United States imposed strict export controls in 2022, the Commerce Department began requiring companies to obtain licenses before shipping such technology abroad, especially to China.
The Justice Department said the creation of ALX Solutions appeared to be a direct response to these new export restrictions. Prosecutors allege the company served as a front for the illegal shipment of chips and related components to Chinese entities, bypassing the necessary U.S. regulatory oversight. This case represents a significant breach of U.S. trade laws, and federal authorities are treating it as a serious national security matter.
The arrests highlight the growing scrutiny over AI chip exports and the United States’ broader campaign to limit China’s access to high-performance computing technology. By enforcing export laws more aggressively, U.S. officials hope to curb China’s advancement in sectors where AI can be leveraged for surveillance or defence. The investigation is ongoing, and further charges could follow depending on what else is uncovered about the network behind the illegal shipments.