East Bay man charged in alleged conspiracy to illegally ship powerful AI computer chips to China

"Federal authorities arrested an East Bay man over an alleged scheme to evade national security-related technology export controls and send powerful, highly sought after computer chips made by Santa Clara company Nvidia to China. Chinese citizen Cham Li, 38, also known as Tony Li, of San Leandro, conspired with two U.S. citizens and another Chinese national to falsify paperwork, make fake contracts, and mislead the American government,"

"Li could not be reached for comment. The Justice Department did not respond to questions about whether he was kept in custody after his arrest Nov. 19. His three alleged co-conspirators were also arrested this week, the department said in a news release. Nvidia's computer-processor chips have become highly prized amid a global race for supremacy in artificial intelligence. China aims to become the world's AI leader by 2030, the Nov. 13 indictment against the four men said."

"In October 2022, the U.S. tightened export controls on certain advanced computer components, imposing licensing requirements that covered four high-end Nvidia chips, the indictment noted. Li, along with a Hong Kong-born U.S. citizen and a 45-year-old Chinese citizen on a student visa who both lived in Tampa, Florida, plus a U.S. citizen from Alabama, launched the alleged conspiracy in September 2023, the indictment claimed. Li and two others sought customers for chips in China, who then placed orders, the indictment alleged."

Federal authorities arrested Cham Li, a 38-year-old Chinese citizen living in San Leandro, on charges of conspiring to evade U.S. national-security export controls by sending high-end Nvidia processors to China. Li allegedly worked with three co-conspirators, including two U.S. citizens and another Chinese national, to falsify paperwork, create fake contracts and mislead the government. The group reportedly shipped 400 Nvidia A100 processors to China via Malaysia between October 2024 and January 2025 and attempted further shipments via Thailand. U.S. export controls tightened in October 2022 covered several high-end Nvidia chips. The indictment links the scheme to China’s AI ambitions and military modernization.

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