China-Linked AI Chip Smuggling Network: Many Red Flags, The Expert Practitioner

The Expert Practitioner quoted partner Mike Huneke in an article about a recently unsealed federal case alleging a large-scale scheme to illegally obtain and ship advanced AI chips to China and Hong Kong in violation of US export-control laws.

Drawing from Mike’s LinkedIn post about the development, the article noted that the complaint provided “more export controls lessons” for compliance teams, as Mike emphasized the role of frontline reporting and how open-source information can amplify risk indicators.

“Thanks to an employee at a U.S. logistics company speaking up, the U.S. government was able to place an undercover agent in the warehouse to witness the unpacking and false labeling of controlled GPUs,” Mike remarked.

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