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AI Chip Smuggling? California Duo Charged in China Export Scheme
Last Updated: August 06, 2025
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Key Takeaways
- Two California men are accused of secretly sending AI chips to China by routing them through Southeast Asia to dodge US export rules;
- The DOJ said over 20 shipments from ALX Solutions reached China after being funneled through Singapore and Malaysia from 2022 to 2025;
- Chuan Geng was released on a $250,000 bond, while Shiwei Yang remains in custody with arraignment for both set for September 11.
Two men from Southern California have been charged with sending artificial intelligence (AI) computer chips to China without following US export rules.
The Department of Justice (DOJ) stated in an August 5 press release that the men worked together to hide the final destination of these advanced processors.
Chuan Geng, a resident of Pasadena, and Shiwei Yang, who lives in El Monte, were named in a federal case filed in Los Angeles.
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Authorities stated that the two operated through their company, ALX Solutions Inc., and tried to avoid US laws by shipping the chips through countries like Singapore and Malaysia before they ended up in China.
Federal officials arrested Geng and Yang on August 2. Geng, who holds permanent resident status, turned himself in. Yang, whom the government said remained in the US after his visa expired, was also taken into custody that day.
According to the complaint, ALX Solutions was formed after the US government started requiring special approval to export certain advanced chips to China.
From October 2022 to July 2025, the company is accused of sending over 20 shipments that were later traced to Chinese destinations. The DOJ noted that many of these shipments first went to companies based in Singapore or Malaysia.
At a court hearing on August 4, Geng was allowed to leave on a $250,000 bond, while Yang is still being held in custody. The two will have a detention hearing before the arraignment, which is scheduled for September 11.
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