US arrests man accused of $300m China server smuggling

US authorities have arrested Greg Lui, a 38-year-old California man also known as Yiu Kong Lui, on accusations that he smuggled more than $300 million worth of export-controlled computer servers to China, the Department of Justice said.

The department said Lui used false paperwork and routed shipments through third countries from 2023 to 2024. It said the servers contained US-made graphics processing units used for what the Trump administration calls Super Intelligence.

Prosecutors said Lui operated Earthmade Computer Inc. to buy items and send them to China without licenses required by the US Department of Commerce. Shipments went to countries including Malaysia and Singapore, where no such license was required, and were then illegally re-exported to China, according to the department.

If convicted, Lui could face up to 50 years in prison. California prosecutor Bill Essayli said US authorities would prosecute people who put national security at risk for profit.