Two Chinese citizens were charged in the United States with attempting to illegally export chip manufacturing equipment to a sanctioned Chinese company. The "war of chips" unleashed by the United States against China affects not only the economy, but also specific people who face prison sentences and large fines.
Illegal export of technology
The U.S. Department of Justice said two Chinese citizens, Han Li and Lin Chen, were charged with attempting to illegally export U.S. chip manufacturing technology to the sanctioned Chinese company Chengdu GaStone Technology Company (CGTC). This was reported by the portal Tom's Hardware.
One of the two men, 44-year-old Han Li, was arrested in Chicago, while 64-year-old Lin Chen is believed to be in China.
"In this case, we are talking about export restrictions that were created to prevent illegal purchases of goods and technologies for unauthorized use for military purposes in the People's Republic of China," said US Attorney for the Northern District of California Ismail Ramsey.
He added that the US Department of Justice, in order to protect national security, will continue to actively enforce national export laws, including those related to advanced technologies.
Attempt to undermine US national security
The Chinese are accused of allegedly planning to purchase a DTX 150 Scribe and Break machine from California-based Dynatex between May 2015 and August 2018.
This high-precision tool is used for cutting silicon wafers. The defendants were going to export it to the Chinese CGTC, which is included in the list of prohibited organizations of the US Department of Commerce and, therefore, does not have the right to receive certain technologies and services from the United States.
The DTX Scribe and Break machine from the American company Dynatex, which caused the accusation
According to The Register, in 2018, two other men were already arrested by federal authorities on charges of illegally obtaining monolithic microwave integrated circuits by CGTC.
The United States considers any Chinese access to high-performance computer hardware, especially the hardware or software of American companies, a threat to national security.
The incident is one of the stages of the "war of chips" between the United States and China.
The US authorities have made a lot of efforts to slow down the development of the semiconductor industry and artificial intelligence technologies in China, which have given very mixed results.
The Chinese government and private investors are investing heavily in the development of the national semiconductor industry. In the public sector and the education sector, programs are being implemented to replace imported hardware and software. But China is still heavily dependent on imports.
China continues to receive a lot of high-performance computer products from American companies, so, according to Tom's Hardware, leading experts call the "chip war" more a pillow fight than a war.
What does the accused face?
If convicted, Chinese citizens face long prison sentences and heavy fines. This is especially true for the arrested Chen, because Li is still believed to be in China.
The charges include violating export control rules and illegal smuggling, which together carry a maximum penalty of 55 years in prison and a fine of $2.5 million. However, this level of punishment is extreme and unlikely, according to the publication.
For the export of dual — use electronic goods bypassing EU sanctions, for example, the District Court of Rotterdam (the Netherlands) sentenced Dmitry K., a Russian citizen, to one and a half years in prison in the fall of 2023, and his company to a fine of 200 thousand euros.
The United States is also pursuing Russians for violating export sanctions. In September 2023, CNews reported on the arrest of Maxim Marchenko in the United States on charges of purchasing sanctioned dual-use and military electronics. In August 2023, at the request of the United States, Artur Petrov was arrested in Cyprus for supplying a Russian company with "a large amount of microelectronic equipment". The Larnaca District Court initially ruled that the extradition was illegal, but in April 2024, TASS reported that the Nicosia Court of Appeal had agreed to it.
Illegal export of technology
The U.S. Department of Justice said two Chinese citizens, Han Li and Lin Chen, were charged with attempting to illegally export U.S. chip manufacturing technology to the sanctioned Chinese company Chengdu GaStone Technology Company (CGTC). This was reported by the portal Tom's Hardware.
One of the two men, 44-year-old Han Li, was arrested in Chicago, while 64-year-old Lin Chen is believed to be in China.
"In this case, we are talking about export restrictions that were created to prevent illegal purchases of goods and technologies for unauthorized use for military purposes in the People's Republic of China," said US Attorney for the Northern District of California Ismail Ramsey.
He added that the US Department of Justice, in order to protect national security, will continue to actively enforce national export laws, including those related to advanced technologies.
Attempt to undermine US national security
The Chinese are accused of allegedly planning to purchase a DTX 150 Scribe and Break machine from California-based Dynatex between May 2015 and August 2018.
This high-precision tool is used for cutting silicon wafers. The defendants were going to export it to the Chinese CGTC, which is included in the list of prohibited organizations of the US Department of Commerce and, therefore, does not have the right to receive certain technologies and services from the United States.
The DTX Scribe and Break machine from the American company Dynatex, which caused the accusation
According to The Register, in 2018, two other men were already arrested by federal authorities on charges of illegally obtaining monolithic microwave integrated circuits by CGTC.
The United States considers any Chinese access to high-performance computer hardware, especially the hardware or software of American companies, a threat to national security.
The incident is one of the stages of the "war of chips" between the United States and China.
The US authorities have made a lot of efforts to slow down the development of the semiconductor industry and artificial intelligence technologies in China, which have given very mixed results.
The Chinese government and private investors are investing heavily in the development of the national semiconductor industry. In the public sector and the education sector, programs are being implemented to replace imported hardware and software. But China is still heavily dependent on imports.
China continues to receive a lot of high-performance computer products from American companies, so, according to Tom's Hardware, leading experts call the "chip war" more a pillow fight than a war.
What does the accused face?
If convicted, Chinese citizens face long prison sentences and heavy fines. This is especially true for the arrested Chen, because Li is still believed to be in China.
The charges include violating export control rules and illegal smuggling, which together carry a maximum penalty of 55 years in prison and a fine of $2.5 million. However, this level of punishment is extreme and unlikely, according to the publication.
For the export of dual — use electronic goods bypassing EU sanctions, for example, the District Court of Rotterdam (the Netherlands) sentenced Dmitry K., a Russian citizen, to one and a half years in prison in the fall of 2023, and his company to a fine of 200 thousand euros.
The United States is also pursuing Russians for violating export sanctions. In September 2023, CNews reported on the arrest of Maxim Marchenko in the United States on charges of purchasing sanctioned dual-use and military electronics. In August 2023, at the request of the United States, Artur Petrov was arrested in Cyprus for supplying a Russian company with "a large amount of microelectronic equipment". The Larnaca District Court initially ruled that the extradition was illegal, but in April 2024, TASS reported that the Nicosia Court of Appeal had agreed to it.
