Two Chinese nationals, one a legal resident of California, have been charged after shipping artificial intelligence technology to China.
Chuan Geng, 28, of Pasadena, and Shiwei Yang, 28, of El Monte, have been charged with violating the Export Control Reform Act, a felony that carries up to 20 years in prison. Geng is a legal resident of the state, whereas Yang is an illegal immigrant after overstaying her visa.
The defendants “knowingly and willfully exported from the United States to China sensitive technology, including graphic processing units (GPUs) – specialized computer parts used for modern computing – without first obtaining the required license or authorization from the U.S. Department of Commerce,” the Justice Department explained, citing information from an affidavit. The individuals acted through their El Monte-based company, ALX Solutions.
While a shipment was labeled as a graphic processing unit (GPU) in line with federal regulations, it was a material that required a license for export to China.
The chip is considered the “most powerful GPU chip on the market,” and is “designed specifically for AI applications,” such as “to develop self-driving cars, medical diagnosis systems, and other AI-powered applications,” the DOJ said.
Authorities have since obtained the defendants’ phones, the Justice Department added, which revealed “incriminating communications” regarding “shipping export-controlled chips to China through Malaysia to evade U.S. export laws.”
The development is another instance in which Chinese nationals have illegally exported materials to foreign adversaries. In June, an illegal immigrant from China pleaded guilty to illegally exporting firearms, ammunition, and other military materials to North Korea.
Shenghua Wen, 42, concealed the materials inside shipping containers and was wired an estimated $2 million from North Korea to participate in the activity.
