TECH NEWS – A video card company in China has been busted, and the authorities seized thousands of graphics cards.
MyDrivers reports that Chinese customs have caught XFX after the company was cheating the system. The company is headquartered in the United States and has several subsidiaries, including one in China. They used a simple trick to avoid paying more taxes. The trick is that the company that makes the video cards misrepresented the specifications and names of the GPUs. Simply put, it is tax evasion that also benefits customers: XFX could make its tax-fraud video cards cheaper.
However, the Chinese authorities have seized a significant stock: to be precise, they have confiscated 5840 video cards from XFX. All of them were incorrectly listed by the manufacturer. The total value of the cards is around RMB 20 million, which is equivalent to over three million dollars. The stock is being examined under the law. Still, after that, it would not be surprising if this stock does not leave the country, making the already costly hardware (which could be even more expensive, as Ukrainian neon production has stopped and neon is needed to create the chips) even more unaffordable.
XFX’s portal in China has become unavailable (however, everything is now back up and running… what an interesting pace), and the company has also gone offline on TMall, one of the digital stores there. The joke is that this is not the only case in the Far East. A total of 150,000 video cards (both new and used) were imported in the region using similar methods, and it was XFX that sold its products directly to crypto miners instead of including distributors in the supply chain, thus lining their own pockets rather than the consumer’s, as they made more profit from the sales.
So nowadays, if you see fewer XFX video cards in the shops, it could be because of the authorities catching the trick. If you have to replace your graphics card today, you’d have to sell your kidney even to get a used model.