Foreign Nationals Charged with Supplying Essential Technology to the CCP

Two Chinese Nationals Arrested for Illegal Exports

Authorities have arrested two Chinese citizens, as confirmed by the Department of Justice (DOJ).

On Tuesday, the DOJ issued a statement identifying Chuan Gen, a resident of Pasadena, California, and Seawei Yang, a 28-year-old from El Monte, as key figures in an ongoing investigation. According to the announcement, both individuals are charged with violating the Export Control Reform Act, a serious offense that could lead to a 20-year prison sentence. Geng turned himself in on Saturday, while Yang was arrested the same day.

Geng is a legal permanent resident, whereas Yang is an undocumented immigrant. Following their arrest, a federal judge set Geng’s bail at $250,000, and Yang is scheduled for a custody hearing on August 12.

According to the affidavit, the defendants are accused of intentionally exporting sensitive technology from the U.S. to China between October 2022 and July 2025. This technology includes GPU chips designed for AI applications that could be used in various advanced systems like autonomous vehicles and medical diagnostics.

Authorities also noted that a company known as ALX Solutions Inc. was established shortly after the Commerce Department began enforcing licensing requirements for specific microchips that Yang and Geng allegedly exported without permission.

Documents and business records indicate that ALX Solutions was involved in at least 20 shipments from December 2024 that included exports to Singapore and Malaysia. One shipment, wrongly labeled as a GPU not subject to federal regulations, actually contained GPUs needing export licenses for China, which Geng, Yang, and their company sought from the Commerce Department.

Authorities claim that ALX Solutions received substantial payments from companies based in Hong Kong and China, including a notable $1 million deposit in January 2024. During the arrests, officials searched the ALX Solutions office, seized phones belonging to Geng and Yang, and purportedly found communication that discussed how to illegally export controlled chips to China using Malaysia as a transit point to bypass U.S. laws.

The investigation continues with the U.S. Department of Commerce’s Office of Industry and Security and the FBI involved. A hearing for Geng and Yang is set for September 11, and neither has entered a plea during their initial court appearance.