WASHINGTON: Two Chinese language males are in custody for allegedly smuggling Nvidia H100 and H200 chips to China, the US Justice Division mentioned on Monday (Dec 9), as President Donald Trump gave the green light for Nvidia to export its H200 chips to Beijing.
Prosecutors allege that Fanyue Gong, 43, a Chinese language citizen residing in New York, and Benlin Yuan, 58, a Canadian citizen from China, independently conspired with workers of a Hong Kong-based logistics firm and a China-based AI know-how firm to bypass US export controls, in response to the Justice Division.
In court docket paperwork, prosecutors mentioned that Gong and his co-conspirators obtained the Nvidia chips by means of straw purchasers and intermediaries, and falsely claimed that the products have been for US clients or clients in third nations like Taiwan and Thailand.
The chips have been shipped to a number of US warehouses, the place people eliminated the Nvidia labels and affixed labels bearing the title of what prosecutors consider was a pretend firm, in response to the legal criticism. The chips have been then ready for export, in response to the criticism.
In a separate criticism, prosecutors mentioned Yuan helped recruit and organise people to examine the mislabeled chips on behalf of the Hong Kong logistics firm.
Yuan allegedly agreed to direct inspectors to not say the products have been destined for China, prosecutors mentioned, including that he additionally directed discussions to craft a narrative his firm might use to get chips and different tools launched after they have been seized by federal authorities.
Prosecutors estimate that the scheme had been in operation since no less than November 2023, in response to court docket paperwork.
Yuan’s lawyer declined to remark, whereas a consultant for Gong couldn’t instantly be recognized.
A spokesperson for the Chinese language Embassy in Washington mentioned, “The Chinese language authorities requires Chinese language residents overseas to strictly abide by native legal guidelines and laws, whereas additionally legally defending the authentic rights and pursuits of Chinese language residents abroad.”
