2 Chinese Nationals, 2 Americans Charged With Smuggling Nvidia Chips To China

Core Viewpoint - Four individuals, including two Chinese nationals and two U.S. citizens, have been charged with illegally exporting advanced Nvidia chips to China, violating U.S. export controls [1][4][5]. Group 1: Charges and Allegations - The defendants are charged with conspiracy to violate the Export Control Reform Act, smuggling, and conspiracy to commit money laundering [4]. - The illegal export scheme involved advanced graphics processing units (GPUs) with AI applications, transshipped through Malaysia and Thailand [4][5]. - The indictment alleges that the defendants falsified paperwork and created fake contracts to mislead U.S. authorities [6]. Group 2: Financial Transactions - The defendants received over $3.89 million in wire transfers from China to fund their scheme [10]. - A notable wire transfer of $1.15 million occurred in March from a Hong Kong-based company to an account belonging to Raymond's electronics company [10][11]. - Another transfer of $237,248 was sent in November from a Hong Kong-based company to Janford Realtor [11]. Group 3: Nvidia's Position and Response - Nvidia stated that its export system is rigorous and comprehensive, with strict scrutiny on even small sales of older generation products [12]. - The company emphasized that smuggling products for datacenters is technically and economically unfeasible, and it does not support or repair restricted products [12]. Group 4: Legislative Response - Rep. John Moolenaar called for the urgent passage of a chip-tracking bill to enhance oversight on advanced AI chips [14][15]. - The proposed Chip Security Act would require location verification for advanced AI chips and enforce mandatory reporting from chipmakers [15].