Two Chinese nationals arrested for illegally exporting microchips to China

In the United States, two Chinese nationals, Chuan Geng and Shiwei Yang, were arrested for allegedly exporting advanced microchips used in artificial intelligence applications to China without the required federal authorization. Geng, who is a lawful permanent resident, and Yang, an undocumented immigrant, operated a company named ALX Solutions, which they founded around the time when the U.S. Department of Commerce began requiring licenses for such exports. Their alleged activities took place over a period of almost three years, during which they purportedly shipped sensitive technology worth tens of millions of dollars to China. The Justice Department's investigation revealed that their company had engaged in a complex scheme involving intermediary shipping companies in countries like Singapore and Malaysia. This method was reportedly employed to mask the unlawful exportation of microchips to China. The defendants are accused of deliberately mislabeling shipments and receiving payments from companies based in Hong Kong and China, despite claiming to export goods through other entities. Federal agents conducted a raid on the office of ALX Solutions, where they confiscated mobile devices belonging to both Geng and Yang. The retrieved communications indicated plans to ship export-controlled technology through Malaysia to bypass U.S. export laws, further implicating them in the alleged violations. If convicted, both individuals face severe penalties, including potential prison sentences of up to 20 years. The legal proceedings have set a schedule for a detention hearing and an arraignment in the coming weeks, underscoring the seriousness of the charges laid against the defendants. This arrest is part of broader enforcement efforts by U.S. authorities to prevent the unauthorized transfer of sensitive technology to foreign nations, particularly China, in light of national security concerns.