Two Chinese nationals, Chuan Geng and Shiwei Yang, are facing federal charges for illegally exporting high-performance AI chips to China, flouting U.S. export laws designed to protect sensitive technology. The duo allegedly utilized their company, ALX Solutions Inc., to ship restricted graphics processing units (GPUs) to China by routing their shipments through Southeast Asia to conceal the final destination. The legal action follows federal investigations revealing over 20 shipments sent from the U.S. to freight-forwarding companies in Singapore and Malaysia meant to mask the shipments’ true destination. Both men were arrested, with Geng being released on a $250,000 bond while Yang, who overstayed his visa, remains in custody. If convicted, each faces a maximum of 20 years in prison. This case underscores the increasing U.S. restrictions on AI technology exports to China amid rising national security concerns, highlighting the technological tensions in the context of U.S.-China relations.

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