US alleges California man smuggled export-controlled servers to China

By Kanishka Singh

WASHINGTON, Oct ‌1 (Reuters) - A ​California ​man was arrested on federal charges alleging he smuggled to China more than $300 million worth of export-controlled computer ‌servers containing US-manufactured graphics processing units commonly used for ⁠AI applications, the US Justice Department said on Thursday.

DETAILS AND QUOTES:

• Greg Lui, ‌38, also known as "Yiu ‌Kong Lui," of San Gabriel, California, was expected to make his initial appearance and be arraigned on Friday in the ​US District Court in downtown Los Angeles, the Department of Justice said.

• Lui was charged with one count of conspiracy ⁠to violate the Export Control Reform Act and the Export Administration Regulations, one count ​of outbound smuggling, and one count of conspiracy to commit money laundering, the DOJ said.

• The case is ​the latest in a series of ‌federal prosecutions that target the alleged smuggling of advanced American computing technology to China, as Washington ⁠seeks to prevent Beijing from acquiring chips that could strengthen its military capabilities.

• Lui owns Earthmade Computer, a technology company and closely held ⁠corporation, the Justice Department said.

• Lui could not be reached for comment. Earthmade ​Computer did not immediately respond to a request for comment.

• From 2023 to 2024, Lui and his co-conspirators used Earthmade to buy and send export-controlled ‌items to China without the required licenses issued by the US Department of Commerce, the Justice ‌Department added.

• The DOJ alleged they shipped these items to countries ⁠such as Malaysia and ‌Singapore, where no such ​license is required and then illegally re-exported them to China.

(Reporting by Kanishka Singh in Washington; Editing by ‌Stephen Coates)

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Ukrainian minister hopes to heal 'misunderstanding' with South Korea, media reports
• Comcast's NBCUniversal cuts streaming technology jobs
• Tokyo core inflation jumps in September, bolsters case for more BOJ hikes