XFX shuts down online stores in China after confiscating mislabeled GPUs


XFX is having a rough few days in China due to the recent controversy surrounding a mislabeled GPU shipment.

(Photo: Gavin Roberts/PC Gamer Magazine/Future via Getty Images)
An XFX Radeon R9 390X PC graphics card captured on August 6, 2015.

In response to the issue, AMD AIB (add-in board partner) has closed its online stores in the country. This includes both its Chinese website and its e-commerce page on TMall, according to the information DotESports. As of this writing, online stores have been closed for days, although there is no indication that XFX is directly involved in the problem.

This “issue” is related to 5,800+ AMD graphics cards valued at over $3 million. Allegedly a bunch of RX 6700 XTs, the GPUs reportedly featured mislabeled specs.

According to reports from the Chinese authorities, this is a common way for companies to reduce the import tax on imported products VideoCardz. In layman’s terms, this is basically a tax evasion attempt.

But if it’s true that the company wants to avoid import tax laws, it could have made more profit from selling the cards. That’s because lower import taxes mean lower prices, he writes WCCF Tech.

The shipment, totaling 5,840 graphics cards, was confiscated right amid China’s crackdown on crypto-mining, which could mean PC gamers there could finally get a fair shot, writes Tom’s hardware. That’s because XFX has allegedly been involved in some shady deals with crypto miners in the past, particularly in the early days of the pandemic.

The Shady Deals of XFX

VideoCardz reported back in 2020 that the same company was rumored to be selling directly to crypto miners. This was published as a rumor in the MyDrivers forumswhich XFX directly implies.

The rumors are that the company has sold most of its stocks of RX 580 8GB, RX 590 8GB and RX 5600 XT/5700 XT graphics cards directly to miners instead of retailers. But although this rumor has never been officially confirmed, there have been multiple sightings of said cards being resold online as mining cards. Not only in China, mind you, but also in other places in the world like Dubai as shown in this video:

Also read: AMD Radeon RX 6700 XT confiscated by Chinese customs! Why a Million Dollars Worth of GPUs Were Seized

Does AMD have anything to do with this?

As of now, AMD has not commented on the issue. XFX’s California HQ hasn’t issued their own statement on the matter either, making this a developing story. But this could have big implications for the further development of XFX.

If it is confirmed that XFX China intentionally mislabeled the GPU shipment to avoid import tax laws, it is a criminal offense. This could put the company’s entire Chinese branch out of business. But it’s not even the first time a shipment of graphics cards has been seized with a similar anomaly.

According to the original VideoCardz report, around 150,000 used and brand new GPUs were imported into China the same way in the past.

Graphics card photo shoot

(Photo: Gavin Roberts/PC Gamer Magazine/Future via Getty Images)
A selection of gaming PC graphics cards including (clockwise from top) a Sapphire Radeon R9 Fury Tri-X, Gigabyte GTX 970 G1 Gaming and XFX Radeon R9 390X, taken on August 6, 2015.

Related article: AMD is preparing NEW Ryzen 5000 CPUs to compete against 12th Gen Intel

This article is owned by Tech Times

Written by RJ Pierce

ⓒ 2021 TECHTIMES.com All rights reserved. Do not reproduce without permission.


Comments are closed.