Nvidia scandal sparks debate over tougher US policy towards China
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. The revelation that Nvidia CEO Jensen Huang is in a relationship with a woman suspected of spying for China has strengthened calls for a tougher policy towards China in the United States. The incident has also raised questions about President Donald Trump’s administration’s approval to export advanced technology to China.
Huang admitted to having an affair with Alice Huang, a former executive of Megaspeed in Singapore. U.S. intelligence officials have suspected that Ellis was working for Chinese intelligence. President Trump called Huang a “respectable person” and said he did not know the woman was a spy.
Trump allowed Nvidia’s H-200 chip to be sold in China last year following efforts by Huang, who has been advocating for advanced AI chip exports to China. U.S. lawmakers who have been opposing it have seen the current dispute as an opportunity to tighten export controls.TAG_OPEN_div_17
Republican lawmakers are set to hold a closed-door discussion with him on Nov. 18 about his relationship with Huang and Nvidia’s security arrangements. Analysts say the incident could lead to a bipartisan bill that would give Congress the power to review and restrict the export of advanced chips to China.
But there are also concerns that tighter export controls could upset the trade truce between Trump and Chinese President Xi Jinping and that China could take retaliatory measures in the U.S. supply chain. The FBI is investigating the espionage allegations, while the Justice Department is investigating whether Nvidia chips were smuggled into China. Megaspeed has denied the smuggling allegations, while China has denied the espionage claims.
According to analysts, if Huang is found guilty of wrongdoing or if he has to leave the company, the U.S. AI industry could be affected. But they believe the case is likely to reduce Nvidia’s influence within Congress and the U.S. administration.
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