Man arrested for smuggling computers to China

A man from San Gabriel, California, was arrested on October 1, 2026, for allegedly smuggling high-end computers worth more than 300 million dollars to China, violating U.S. export controls.

Accused is computer company owner

The accused, Greg Lui, 38, also known as Yiu Kong Lui, is the owner of Earthmade Computer Inc., based in City of Industry, California. He was arrested by the U.S. Department of Justice (DoJ) on the same day.

Smuggling scheme spanned multiple years

According to a DoJ indictment filed on September 29, 2026, the scheme ran from 2023 to 2024, with an active period extending into August 2026. The computers were first sent to Malaysia and Singapore before being redirected to Chinese buyers.

Servers used for AI development

The servers, equipped with Nvidia A100 and H100 GPUs, are commonly used to train large language models. One shipment of 27 servers, valued at about 7.6 million dollars, was initially presented as going to a Malaysian transit company.

Fraudulent documentation used

A second batch of 92 servers was intended to go through Singapore, Malaysia, and Hong Kong before reaching a company in Hangzhou, a major Chinese AI hub. A third batch of 100 servers, valued at over 22 million dollars, used fake documentation from a fictitious buyer named "Jackie Lui."

Financial transactions linked to scheme

Between January and October 2024, Earthmade Computer Inc. received over 176 million dollars from two Malaysian-based transit companies as part of the smuggling operation. Lui faces three charges, including conspiracy to violate export control laws, export smuggling, and money laundering.

Charges carry significant prison time

Lui could face up to 20 years in prison for the conspiracy and money laundering charges, and 10 years for smuggling. He appeared in court on October 1 and was formally charged that afternoon.

U.S. officials stress national security

Bill Essayli, a U.S. attorney, stated that Lui used forged documents and third-country shipments to smuggle over 300 million dollars worth of restricted computers to China. John A. Eisenberg, an assistant attorney general, emphasized the importance of protecting U.S. leadership in chip technology.

FBI highlights scale of the breach

Roman Rozhavsky, an FBI official, noted that the investigation revealed Lui sold hundreds of millions of dollars worth of American technology to the Chinese government, violating export control laws. This case follows a similar smuggling scheme involving a senior Nvidia executive in Taiwan.

Nvidia downplays black market size

A Nvidia spokesperson told Bloomberg that less than half of one percent of the company's products may have been diverted to China. However, a Bloomberg investigation suggests the black market for chips is much larger than official figures indicate.

U.S. government redefines AI as super intelligence

Donald Trump has proposed renaming artificial intelligence as "super intelligence," a term used by some U.S. officials. He argues that the term "artificial" gives the technology a misleading image, and that current AI surpasses simple human imitation.

Critics reject the new terminology

California Governor Gavin Newsom and the Chinese Ministry of Foreign Affairs have rejected the term, preferring to continue using "artificial intelligence." Both governments are expected to continue using the traditional term despite the proposed change.