The Hong Kong Customs and Excise Department recently stopped a suspected smuggler from shipping 596 CPUs to China through the Shenzhen Bay checkpoint. The CPUs were hidden in fake compartments within a vehicle and were valued at $1.5 million in total. These high-end CPUs were capable of powering cloud services and artificial intelligence workloads. It is uncertain whether these chips are allowed to enter China under current regulations, considering the US sanctions in place. This incident is just one example of the various smuggling routes used to obtain equipment in China.
Hong Kong authorities frequently intercept smuggled technology crossing the border, with past incidents involving counterfeit cigarettes, fashion items, and even a van loaded with lobsters and GPUs. In neighboring Macau, there have been arrests of individuals attempting to smuggle Intel Core processors into China by strapping them to their bodies or wrapping them in transparent film. The US restrictions on technology exports to China are aimed at preventing the Chinese military from using advanced processors for potentially harmful activities like nuclear weapons testing or offensive cyber operations.
The Hong Kong Customs and Excise Department has not disclosed any information about the potential buyers of the seized CPUs or their origins. However, they have highlighted the HK$3 million in taxes that the suspected smuggler attempted to evade. This incident sheds light on the ongoing challenge of illicit technology smuggling across borders and the potential risks associated with unauthorized technology transfers to China.
In conclusion, the interception of 596 CPUs by Hong Kong authorities highlights the ongoing issue of technology smuggling and the potential consequences of unauthorized exports to China. The high-value CPUs seized in this case underscore the importance of vigilance in monitoring cross-border trade for illicit activities. The efforts of the Customs and Excise Department in preventing the shipment of these CPUs demonstrate the commitment to combating illegal technology transfers and safeguarding national security interests.
Article Source
https://www.theregister.com/2024/06/19/hong_kong_cpu_smuggler_busted/