China Accuses US of Fabricating Spy Claims to Justify Tech Blockade Amid Nvidia CEO Scandal

China has called on the United States to cease the creation of "so-called spy narratives" and their use as a justification for implementing a technological blockade. These comments come in response to national security concerns that have arisen due to an alleged affair involving Nvidia's CEO, Jensen Huang.

Chinese Foreign Ministry spokesperson Mao Ning addressed the allegations at a press briefing on Thursday, stating that China's technological advancement is a product of independent innovation and open collaboration. She added that Beijing is prepared to work with the US to enact the consensus reached by their respective heads of state. This statement follows an agreement between US President Donald Trump and Chinese President Xi Jinping to ease tariffs and lift tech restrictions, aiming to de-escalate tensions after a period of reciprocal tariffs during trade negotiations in Busan, South Korea. The remarks precede an upcoming meeting between Trump and Xi at the APEC summit in Shenzhen, China.

Jensen Huang, who co-founded Nvidia and established it as the leading global supplier of artificial intelligence (AI) chips, has acknowledged having an extramarital affair. Reports identified the woman as Alice Huang, a former executive at Singapore-based Megaspeed, whom US officials suspect of working for Chinese intelligence. Megaspeed issued a statement on Thursday affirming its commitment to complying with US export control laws and to transparent cooperation with the US government.

For years, Nvidia's 63-year-old CEO has actively lobbied against restrictions on selling advanced chips to China. Notably, last year, Trump approved the export of Nvidia's H200 chips to China, overriding objections from both Republicans and Democrats concerned about China's potential dominance in AI technology.

China's Ministry of Foreign Affairs has refuted these claims, labeling them as "entirely groundless, speculative and intended to smear and malign China." The future of Huang's leadership at the $4.2 trillion company is uncertain following an investigation launched by Nvidia on Sunday, with no clear succession plan publicly announced.