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US arrests California man for alleged $300m computer server smuggling to China

US authorities have arrested a California man accused of smuggling over $300m worth of export-controlled computer servers to China, according to the Department of Justice.

  • Greg Lui, 38, allegedly used false paperwork and shipments through third countries to smuggle the servers.
  • The servers contained US-manufactured graphics processing units (GPUs) used for Super Intelligence (AI).
  • Lui reportedly operated Earthmade Computer to facilitate unlicensed shipments to China between 2023 and 2024.

US authorities have arrested Greg Lui, 38, of California, also known as “Yiu Kong Lui”, on suspicion of smuggling more than $300m worth of computer servers to China. The Department of Justice announced the arrest, stating that Lui allegedly used false paperwork and routed shipments through third countries to bypass export controls.

The justice department stated that the servers contained “US-manufactured graphics processing units (GPUs) commonly used for Super Intelligence (SI)”, which is the Trump administration’s term for artificial intelligence (AI). Bill Essayli, the US attorney for the central district of California, emphasised the importance of preventing advanced technology from strengthening adversaries' military capabilities.

Lui reportedly operated a technology company called Earthmade Computer, which he used to purchase and send items to China without the necessary licenses from the US Department of Commerce between 2023 and 2024. The company allegedly shipped items to countries such as Malaysia and Singapore, where no such license was required, before illegally re-exporting them to China. If convicted, Lui could face a maximum of 50 years in prison.

Why this matters: The US has implemented export controls on advanced chips to slow China's progress in cutting-edge AI, and this arrest highlights efforts to enforce these restrictions.

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