Illegal export of sensitive high-power AI microchips from L.A. County to China claimed by federal authorities.
In a recent development, two individuals, Chuan Geng and Shiwei Yang, both based in Los Angeles County, have been charged with illegally exporting tens of millions of dollars' worth of sensitive artificial intelligence (AI) microchips from the U.S. to China.
The accused pair, who are 28 years old, allegedly operated an El Monte-based technology company called ALX Solutions Inc. The company reportedly shipped high-powered graphics processing units (GPUs) such as Nvidia's H100, known for their strong AI application capabilities, from October 2022 to July 2025.
To conceal the illegal shipments to China, the company reportedly routed at least 20 shipments through freight-forwarding companies in Singapore and Malaysia, a common tactic to evade detection by U.S. authorities. Law enforcement seized incriminating communications from the defendants' phones during a raid of ALX Solutions, which included evidence about shipping export-controlled chips via these third countries.
Chuan Geng, a lawful permanent U.S. resident, and Shiwei Yang, who was in the country illegally, are accused of undercutting federal export regulations to conceal illegal shipments to China for nearly three years. They have been charged with violating the Export Control Reform Act, a 2018 law that strengthened federal controls regarding the export of "emerging and foundational technologies."
The Export Control Reform Act violation charged against them is a felony that carries a statutory maximum penalty of up to 20 years in prison. Geng was released on a $250,000 bond, while a detention hearing for Yang was scheduled. Their arraignment is set for September 11–12, 2025.
Meanwhile, Yaoning 'Mike' Sun of Chino Hills has been charged with acting as an illegal agent of a foreign power and conspiring to advance China-friendly policies in local government in California. The FBI and the Department of Commerce Bureau of Industry and Security are continuing to investigate the cases.
It's important to note that neither Geng nor Yang entered a plea on the charges on Monday. ALX Solutions specialized in providing high-powered central and graphics processing units for individuals and businesses. Geng and Yang were accused of falsely labeling graphics processing units as licensed, despite not having applied for or obtained a license from the Commerce Department on multiple shipments.
This case underscores the importance of adhering to federal export control laws, particularly in the context of emerging technologies such as AI. The investigation is ongoing, and more details may emerge as the case progresses.
- Chuan Geng and Shiwei Yang, both based in Los Angeles County, are accused of violating the Export Control Reform Act for illegally exporting sensitive AI microchips from the U.S. to China.
- The two individuals, who were charges with a felony that carries a statutory maximum penalty of up to 20 years in prison, operated an El Monte-based technology company called ALX Solutions Inc.
- ALX Solutions specializes in providing high-powered central and graphics processing units for individuals and businesses in California, but allegedly shipped high-powered graphics processing units from October 2022 to July 2025 without obtaining a license from the Commerce Department.
- To conceal the illegal shipments to China, the company reportedly routed at least 20 shipments through freight-forwarding companies in Singapore and Malaysia.
- In a related case, Yaoning 'Mike' Sun of Chino Hills has been charged with acting as an illegal agent of a foreign power and conspiring to advance China-friendly policies in local government in California.
- The ongoing investigation highlights the importance of adhering to federal export control laws, particularly in the context of emerging technologies such as AI, and underscores the role of government in ensuring Justice, particularly in Laws and Politics, in California, Los Angeles, and the General-News.
