Two Chinese nationals have been arrested in Los Angeles on allegations of illegally exporting sensitive microchips used in artificial intelligence applications to China. The U.S. Department of Justice announced that Chuan Geng, 28, of Pasadena, and Shiwei Yang, 28, of El Monte, face charges under the Export Control Reform Act. If convicted, they could each face up to 20 years in federal prison.
Authorities stated that Geng is a lawful permanent resident while Yang overstayed her visa and is considered an illegal alien. According to court documents, from October 2022 to July 2025, both individuals operated through their company ALX Solutions Inc., based in El Monte. They are accused of sending graphic processing units (GPUs) and other sensitive technology from the United States to China without obtaining required export licenses from the U.S. Department of Commerce.
The complaint notes that ALX Solutions Inc. was established shortly after new licensing requirements were imposed for advanced microchips by the Commerce Department. Investigators reviewed business and export records indicating at least 21 shipments from ALX Solutions between December 2024 and earlier dates went through Singapore and Malaysia—countries often used as transshipment points to hide illegal exports destined for China.
Despite shipping goods purportedly to entities outside China, ALX Solutions did not receive payments from those companies. Instead, funds came from businesses based in Hong Kong and China, including a $1 million payment received in January 2024.
In one instance cited by authorities, a December 2024 shipment falsely declared compliance with federal regulations but actually contained GPUs requiring an export license for shipment to China—a license neither defendant nor their company applied for or obtained.
According to public information referenced in the complaint, the chips involved are described as “the most powerful GPU chip on the market,” designed specifically for AI uses such as self-driving cars and medical diagnostic systems.
Last week, law enforcement searched ALX Solutions’ office and seized phones belonging to Geng and Yang. Authorities say these devices contained communications about routing export-controlled chips through Malaysia to avoid U.S. export laws.
“A complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court,” officials emphasized.
The Bureau of Industry and Security at the U.S. Department of Commerce and the FBI are leading the investigation into this case.
Assistant United States Attorney Colin S. Scott, Joseph Guzman, and Jenna Long from the Terrorism and Export Crimes Section are prosecuting the case with support from Trial Attorney Chantelle Dial of the National Security Division’s Counterintelligence and Export Control Section.
