Two Chinese nationals have been arrested by the U.S. Justice Department for allegedly smuggling Nvidia Corp (NASDAQ:NVDA) chips to China. 

Gong And Yuan Arrested

The Justice Department has charged Fanyue Gong, a New York–based Chinese citizen, and Benlin Yuan, a Canadian national originally from China, for allegedly helping smuggle Nvidia's H100 and H200 chips into China. The two men allegedly collaborated with staff at a Hong Kong–based logistics firm and a China-based AI technology company to evade U.S. export controls.

Prosecutors claim that Gong and his associates acquired the Nvidia chips through intermediaries and straw purchasers, falsely asserting that the goods were intended for U.S. or third-country customers. The chips were subsequently shipped to multiple U.S. warehouses, where workers removed the Nvidia labels and replaced them with labels from a company believed to be fictitious.

According to a separate ...