Chinese Nationals Arrested For Violating U.S. Export Rules In AI Chip Scheme

Two Chinese nationals were arrested this week for allegedly violating U.S. export restrictions by illegally shipping Nvidia AI chips to China, according to Bloomberg. The Justice Department said the defendants used a California-based company, ALX Solutions Inc., to send at least 20 unauthorized shipments through third countries like Singapore and Malaysia. The company received payments from China and Hong Kong. The company operated without Commerce Department licenses required to export the high-performance chips. The defendants face charges under the Export Control Reform Act and could face up to 20 years in prison.