Chinese nationals, including illegal alien, busted shipping $10M in AI chips

The Ministry of Justice announced on Tuesday that two Chinese citizens – one of them is an illegal immigrant – were arrested by allegedly shipping dozens of fine scents of millions of dollars used in artificial intelligence (AI) to China.

Federal criminal complaint accuses Chuan Jing, 28, from Bastadina, California, and Choui Yang, 28, from El Monte, California, of violating the law on Export Control.

Prosecutors said that the crime of felony carries a severe legal punishment of 20 years in prison. Yang – illegal immigrant exceeded her visa – arrested on Saturday. The Ministry of Justice said that Jing surrendered to the federal authorities later that day.

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Their first appeared in the American boycott court in Los Angeles on Monday, but no appeals were taken. At the time, the Federal Magistrate Judge Geng – a permanent legal resident – ordered a bond worth $ 250,000.

The judge also set a detention session on August 12 Liang. It is scheduled to be tried on September 11.

Through AlX Solutions Inc. And Geng and Yang through AlX Solutions Inc. The Geng and Yang “Flag and Whatever” from the United States to the Chinese sensitive technology, including graphic processing units (GPU)-the specialized computer parts used in modern computing-without obtaining a license or abandoning the US Department of Commerce, according to the complaint related to the complaint. It claims that the activity began in October 2022 and continued until July 2025.

According to the complaint, AlX Solutions Inc. was established. Shortly after the Ministry of Commerce began requesting licenses for the advanced precise chips that Yang and Geng were illegally exported.

The Ministry of Justice said that the review of export records, business records and company sites indicates that the shipment of December 2024 and at least 20 previous charges by AlX Solutions included exports from the United States to the shipping and shipping companies in Singapore and Malaysia-usually used as transfer points to hide illegal charges to China. According to the complaint, AlX Solutions did not receive payments from the entities that it claims to issue goods. Instead, the Public Prosecutors say that AlX Solutions have received many payments from the companies residing in Hong Kong and China, including a $ 1 million batch of a company based in January 2024.

President Donald attends the summit of “winning the artificial intelligence race” hosted by all podcasts, cardamom and valley on July 23, 2025 in Washington, DC. (Chip Somodevilla/Getty Images)

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Prosecutors claim that AlX Solutions sent a shipment in December 2024, falsely described as sending graphics processing units subject to federal laws and regulations. Al -Shakawi says that the shipment already contains graphics processing units that require a license to export to China. Jing, no Yang (nor their company) did not submit a request to obtain a license from the Ministry of Commerce or obtain it.

The Ministry of Justice said that the segment was “made by the manufacturer of high -performance artificial intelligence chips” and is considered “the most powerful GPU in the market.” According to the complaint, the slide is designed “specifically for artificial intelligence applications”, such as “for self -driving cars, medical diagnostic systems and other acting applications.”

President Donald Trump presents an executive order signed during the summit of “winning the artificial intelligence race” on July 23, 2025, in Washington, DC. (Chip Somodevilla/Getty Images)

The law application searched the ALX Solutions office last week and seized the Geng and Yang phones. The Ministry of Justice said that the phones “revealed criminal contacts between the defendants, including contacts about the shipping of exports controllers to China through Malaysia to evade US export laws.”

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The Trump administration seemed to warn the Chinese citizens who sneak into American institutions – including American technology and universities – for possible sabotage or access to information about the value of millions.

Last month, President Donald Trump gave a speech to the summit of artificial intelligence, stressing that the United States must “win the global race with China” with regard to advanced technology. Allied countries and prohibiting artificial intelligence tools in the government that are biased or “wake up”.