Spy Row Goes Global: China Says Jensen Huang Scandal Is A Trap To Choke Its Chips

China on Thursday accused Washington of exploiting unfounded espionage allegations to justify a technological “blockade” against Beijing, after reports alleged that Nvidia CEO Jensen Huang had been targeted in a Chinese spying operation.

Beijing’s Foreign Ministry spokeswoman Mao Ning said China's technological development was driven by independent innovation and open cooperation. “The US side should stop fabricating such 'spy' narratives as a pretext for imposing a technological blockade,” she told a regular briefing, according to AFP.

The controversy surrounding Huang centres on allegations that a woman linked to him may have connections to Chinese intelligence.

Alice Huang, reportedly a former executive at Singapore-based Megaspeed, is suspected by US officials of having worked for Chinese intelligence. The Nvidia co-founder has also acknowledged an extramarital affair, reportedly involving her.

Huang's relationship with China has also drawn attention because of his opposition to US restrictions on chip exports. He has repeatedly argued against curbs on advanced semiconductor sales to the country.

Trump approved the sale of Nvidia's H200 chips to China last year, overriding objections from lawmakers across party lines who fear the technology could strengthen Beijing's position in the AI race.

Beijing has pushed back against the espionage allegations, calling them “groundless speculation” and “an attempt to smear China”.

The dispute has added another point of tension ahead of Trump's planned meeting with Chinese President Xi Jinping at next week's APEC summit in Shenzhen.

The dispute also highlights the growing importance of semiconductor technology in the broader rivalry between Washington and Beijing. Advanced chips are central to the development of artificial intelligence, which both countries see as critical to their economic and military strength.

Washington has increasingly used export controls to limit China's access to high-end processors, citing concerns over their potential use in military applications.

For Beijing, reducing dependence on American semiconductor technology has become a priority. China has stepped up efforts to develop domestic chipmaking capabilities and build its own AI industry, although access to advanced manufacturing equipment and high-performance processors remains a challenge.