Washington (United States) (AFP) - The United States Department of Justice reported that a California businessman was arrested and accused of having smuggled more than $300 million in computer equipment used for artificial intelligence (AI) into China.
First modification: 02/10/2026 - 15:34
Greg Lui, 38, also known as "Yiu Kong Lui," allegedly used false documentation and shipments through third countries to smuggle computer servers subject to export control into China, the department said in a statement issued Thursday.
The servers contained "U.S.-made graphics processing units (GPUs), commonly used for superintelligence" (SI), he added, using President Donald Trump's new name for AI.
"Protecting America's national security means preventing our advanced IS technology from being used to bolster the military capabilities of our adversaries," said California Attorney General Bill Essayli.
"We will vigorously prosecute those who put our national security at risk for profit," he added.
According to the statement, Lui ran a technology company called Earthmade Computer Inc., which he used to buy and ship products to China without the licenses required by the United States Department of Commerce between 2023 and 2024.
The company sent the products to countries such as Malaysia and Singapore, where such a license is not required, and then illegally re-exported them to China.
If convicted, Lui could face a maximum sentence of 50 years in prison.
China, long considered lagging behind the United States in cutting-edge AI, has been rapidly closing that gap.
The United States is seeking to slow China's advance through export controls on advanced chips needed for next-generation AI, blocking access to high-end American semiconductors, such as those made by Nvidia.
© 2026 AFP
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