China Claims US is 'Fabricating' Nvidia Spy Allegations to Justify Tech 'Blockade'

China's Foreign Ministry has responded to an investigation into Nvidia CEO Jensen Huang, who is alleged to have had an affair with a woman believed by US intelligence to be a Chinese spy. Beijing urged the United States to cease "fabricating so-called spy narratives and using them as a pretext for imposing a technological blockade."

Chinese Foreign Ministry spokesperson Mao Ning stated at a press briefing on Thursday that the allegations were "entirely groundless, speculative and intended to smear and malign China." These comments come ahead of a meeting between US President Donald Trump and Chinese President Xi Jinping next week at the APEC gathering.

Highlights

• Nvidia CEO Jensen Huang is under investigation for an alleged affair with a woman US intelligence suspects is a Chinese spy.
• China's Foreign Ministry dismissed the claims as "fabricated spy narratives" by the US to justify a technological blockade.
• Huang is the co-founder and CEO of Nvidia, a leading supplier of chips that power artificial intelligence.
• Last year, the Trump administration approved the export of Nvidia's H200 chips to China, despite objections from US lawmakers.
• Nvidia has launched an investigation into Huang, leaving his position at the helm of the $4.2 trillion company uncertain.

Details

Jensen Huang, the CEO of Nvidia, has admitted to having an extramarital affair. The woman in question was reportedly Alice Huang, a former executive at Singapore-based Megaspeed, whom US officials believe worked for Chinese intelligence. Megaspeed stated that it takes its compliance obligations under US export control laws "extremely seriously" and is committed to working constructively and transparently with the US government.

The 63-year-old head of Nvidia has spent years lobbying against restrictions on the sale of advanced chips to China. Despite concerns from both Republicans and Democrats about potential Chinese dominance in AI technology, President Trump cleared Nvidia's H200 chips for export to China last year.

Why it matters

This incident is a significant development amidst the ongoing technological rivalry and national security concerns between the US and China. Given Nvidia's leading position in AI chips, the spy allegations against its CEO and their potential impact on chip sales to China are highly important for global technology and geopolitical dynamics. Furthermore, the uncertainty surrounding the leadership of a giant company like Nvidia could also affect markets.