US arrests man suspected of smuggling servers — Channel NewsAsia

US authorities have arrested 38-year-old California resident Greg Lui, also known as Yu Kong Lui, in a case involving the alleged smuggling of computer servers worth more than $300 million to China. As Channel NewsAsia reports, the US Department of Justice announced the arrest on October 1.

Scheme involving shipments through third countries

According to the US agency, Lui used false documents and sent shipments through third countries to deliver servers subject to US export controls to China.

Investigators allege that in 2023–2024, he ran the technology company Earthmade Computer Inc. Through it, according to the Department of Justice, the man purchased and shipped equipment to China without the licenses required by the US Department of Commerce.

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The company allegedly shipped goods, including to Malaysia and Singapore, where such a license was not required. The equipment was then illegally re-exported to China, US authorities claim.

Servers with graphics processors

The servers contained US-made graphics processors, which are typically used for artificial intelligence systems. California prosecutor Bill Essayli said that the United States must prevent advanced artificial intelligence technologies from being used to strengthen the military capabilities of the country’s adversaries.

If convicted, Lui could face up to 50 years in prison. The United States has long imposed export restrictions on advanced chips needed for artificial intelligence development, including by limiting China’s access to high-performance US semiconductors.