Chinese Nationals Charged With Conspiring to Export Microchip Processor to Entity List Company
Chinese nationals Han Li and Lin Chen were charged for their role in a conspiracy to illegally export controlled U.S. technology to Chinese end users, in violation of the International Emergency Economic Powers Act and Export Administration Regulations, the U.S. Attorney's Office for the Northern District of California announced.
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The Commerce Department added Changdu GaStone Technology Co. to its Entity List in 2014, "making the company ineligible to receive exports of certain U.S. technologies and services." In an indictment unsealed April 25, Li and Chen allegedly conspired to "evade the export restrictions" on the company by using intermediary companies to obtain a machine used to process silicon wafer microchips from California company Dynatex International.
From 2015 to 2018, the pair allegedly tried to buy the machine via intermediary company Jiangsu Hantang International, which they alleged to be the buyer and end user. Li and Chen each face a maximum 20-year prison sentence for conspiring to violate IEEPA and for violating IEEPA, five years in prison for false electronic export information activities and 10 years in prison for smuggling. The maximum fines for these violations total $2.5 million.