Two Chinese nationals have been charged by the Department of Justice with attempting to illegally export American technology to China.
Han Li, 44, and Lin Chen, 64, are charged in connection with an alleged conspiracy to smuggle U.S. technology related to semiconductor manufacturing to regulated Chinese companies.. If convicted, the two could face decades in prison and millions of dollars in fines.
“As alleged, the defendants attempted to circumvent export controls and obtain U.S. semiconductor manufacturing technology from prohibited Chinese companies,” said Assistant Attorney General Matthew G. Olsen of the Justice Department's National Security Division. said. “The Department of Justice is committed to strengthening export controls and holding accountable those who seek to illegally procure U.S.-developed technology that endangers national security.”
Mr. Chen was arrested in Chicago on Thursday, and Mr. Li is believed to be in China.
According to the Justice Department, the two used a series of intermediaries between May 2015 and August 2018 to circumvent Commerce Department regulations. According to the indictment, the company was attempting to illegally export a machine used to cut thin semiconductors known as silicon wafers. Used in various electronic devices.
The two allegedly formed a company called Jiangsu Hantang International to purchase machinery from California-based Dynatex International. Instead of using the technology, they tried to illegally export the machines to regulated companies in China, according to the indictment.
This restriction was imposed to prevent certain American technology from falling into the hands of the Chinese military.
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“The export controls at issue in this case were put in place to prevent the illegal procurement of goods and technology for unauthorized military end-use in the People's Republic of China,” said the U.S. Attorney for the Northern District of California. Ismail Ramsey said.
Investigators from the FBI, Department of Homeland Security, and Department of Commerce all worked on the case.
“Interrupting the illegal export of U.S. technology to China is one of the FBI's top priorities. We aggressively pursue those who violate export control laws to protect our national and economic security. '' said FBI Agent Robert Tripp.
U.S. national security officials have long warned about China's theft of American technology and intellectual property.
