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Jensen Huang scandal latest: Trump, Nvidia and Beijing respond

Trump says Jensen Huang told him he did not know the woman was an alleged spy. China calls the claim unsubstantiated

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Beijing has forcefully denied Washington’s allegation that the female mainland Chinese executive who has been romantically linked to Nvidia founder Jensen Huang is a spy. On 9 November, China’s foreign ministry said that the “Chinese spy” allegation was “purely unsubstantiated”.

Meanwhile, US President Donald Trump said that Huang told him he did not know that the executive, who works for a Singapore-based data centre firm, was alleged by US intelligence to be engaged in espionage.

China rejects the allegation

Asked about the Nvidia board’s inquiry into the scandal on 9 November, Chinese foreign ministry spokesperson Guo Jiakun said: “We responded to that last week. The ‘Chinese spy’ allegation is purely unsubstantiated and directed at smearing China.” On 30 October, he had called the reports “baseless and purely slanderous smears against China”.

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In the same briefing, Guo was asked about possible tighter US chip curbs. He said “China’s position on the U.S. export of chips to China is consistent” and referred specifics to “competent authorities”. He gave the same answer to a question on reported Nvidia chips stored in Hong Kong.

What Trump said about Jensen Huang

Speaking at a White House briefing on Monday, Trump said he had spoken to Huang after a media report linked the Nvidia boss to the businesswoman, who has been accused by US intelligence of passing information to China. Trump quoted Huang as saying: “I had no idea that she was a spy.”

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“I really believe him,” Trump said. He also said: “We’ll look into it. I know the FBI is looking into it in terms of something else,” and “I think he’ll be in good shape.”

How the Jensen Huang scandal began

The New York Times reported on 29 October that US intelligence officials believed the executive had passed information to Beijing while building a close relationship with Huang. The newspaper also reported that Trump received a briefing on the intelligence but took no action. Nvidia said at the time that Huang’s interactions with the executive were “not unusual or unexpected”. The espionage allegations are unproven and, according to Al Jazeera, there are no reports of criminal charges.

On 8 November, Nvidia’s board announced an independent inquiry led by a committee of independent directors with outside counsel. It said it had “no reason to believe” national security or company secrets were compromised, but that the inquiry “will examine all available information”.

Huang told staff in an email: “I was unfaithful to my wife.” He said he would cooperate with the inquiry. The woman has not commented publicly, Al Jazeera also reported. Nvidia shares hit a seven month low on Monday, Reuters reported.

What happens next?

Three Republican House committee chairs, John Moolenaar, Brian Mast and Rick Crawford, have asked Huang to appear voluntarily at a closed door briefing on 18 November. They said it is vital for Congress to determine if US national security has been placed at risk. Democratic Senator Elizabeth Warren said Huang and Nvidia’s board “owe Congress answers”.

The South China Morning Post reported that analysts see the fallout as a possible test of the fragile US-China truce, as calls grow in Washington to tighten chip export controls. Trump is due to meet Chinese President Xi Jinping in Shenzhen, where the APEC Economic Leaders’ Meeting runs on 18 and 19 November.

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Opinion among the experts quoted is split. Sam Bresnick of Georgetown University said he did not see the scandal “having a huge impact on the summit”. Ilaria Mazzocco of the Centre for Strategic and International Studies said it “could have a bigger impact down the line”, including at another Trump and Xi meeting expected in December on the sidelines of the G20 summit in Miami, scheduled for 14 and 15 December.