Two Chinese Nationals Arrested for Export Violations

Authorities have apprehended and charged two individuals from China, according to the Department of Justice (DOJ).

A DOJ statement released on Tuesday named Chuan Gen, a resident of Pasadena, California, and another suspect, Seawei Yang, from El Monte, California. Both are implicated in a probe concerning violations of the Export Control Reform Act, a serious felony that could lead to 20 years in prison. Geng reportedly turned himself in to officials on Saturday, while Yang was taken into custody the same day.

Geng holds legal permanent residency, whereas Yang, who has overstayed his visa, is identified as an undocumented immigrant. A federal judge has set Geng’s bail at $250,000, and Yang is expected to face a custody hearing on August 12.

The affidavit indicates that the defendants allegedly “deliberately and intentionally exported sensitive technology from the United States to China between October 2022 and July 2025.” Some of this technology reportedly includes GPU chips tailored for artificial intelligence applications, which could be utilized in developing autonomous vehicles and medical diagnostic systems.

Authorities assert that the company ALX Solutions Inc. was established right around the time when the Commerce Department began requiring licenses for “advanced microchips” that Geng and Yang supposedly exported unlawfully.

Reviews of export records and business documents suggest that, starting in December 2024, ALX Solutions sent multiple cargoes to Singapore and Malaysia that included misleadingly labeled shipments. One notable incident involved cargo that, while inaccurately declared as a GPU not subject to federal regulations, actually contained GPUs necessitating licenses for export to China—licenses that Geng, Yang, and the company allegedly sought from the Ministry of Commerce.

Moreover, it’s claimed that ALX Solutions received significant payments from companies based in Hong Kong and China, including a noteworthy $1 million payment from a Chinese company in January 2024.

During the arrests, law enforcement conducted a search of the ALX Solutions office, confiscating Geng and Yang’s phones. Investigators uncovered communications between the two concerning the shipment of export-controlled chips to China via Malaysia, seemingly to bypass U.S. export laws.

The investigation is ongoing, led by the U.S. Department of Commerce’s Office of Industry and Security and the FBI. Geng’s and Yang’s next court appearance is slated for September 11, and no pleas have been entered at this point.