• Two Chinese nationals, Chuan Geng and Shiwei Yang, arrested for illegal Nvidia chip exports.
• Charges allege shipments valued in the tens of millions sent to China without required licenses.
• Export records show the use of Malaysian and Singaporean logistics firms to disguise final destinations.
• They face up to 20 years in prison for violating the Export Control Reform Act.
• This case follows recent tensions between the U.S. and China over technology transfers.

Two Chinese nationals, Chuan Geng, 28, and Shiwei Yang, 28, have been arrested in California for allegedly exporting tens of millions of dollars worth of Nvidia AI chips to China without the necessary licenses from the U.S. Department of Commerce. The pair operated a company named ALX Solutions, founded shortly after the U.S. imposed strict regulations on technology exports to China, enabling them to ship Nvidia's advanced H100 chips and other components between October 2022 and July 2025, according to Reuters, South China Morning Post, and Channel News Asia.

Authorities allege that from their base in El Monte, California, Geng and Yang orchestrated more than 20 illegal shipments via third-party freight forwarding companies in Malaysia and Singapore, which are known for facilitating prohibited transfers to China. One shipment in January 2024 was reportedly paid for by a China-based company, raising red flags about the legitimacy of the transactions, state records show, as payments consistently came from companies in Hong Kong and China rather than the listed intermediaries, according to The Hill and Al Jazeera.

According to the U.S. Department of Justice, the defendants face severe consequences, including charges that could result in a maximum penalty of 20 years in prison if convicted. Both have appeared in federal court, where Geng was released on a $250,000 bond, while Yang, who overstayed her visa, remains in custody with a detention hearing set for August 12, reports BBC and India Times.

The investigation continues amid a backdrop of increasing scrutiny over illegal technology transfers to China, as U.S. officials assert that such measures are essential for national security. Specifically, the Nvidia H100 chips exported by the defendants are considered cutting-edge technologies utilized in AI development and applications, highlighting the stakes of the ongoing technological rivalry between the U.S. and China, according to TRT World and Channel News Asia.