China rejects spy claims tied to Nvidia CEO as summit with Trump nears

What Beijing said

China pushed back on reports that its government ran an espionage play involving Nvidia's Jensen Huang. At a regular Beijing briefing, Foreign Ministry spokesman Guo Jiakun said, "The so-called Chinese spy allegation is unsubstantiated," adding, "It is nothing but smears against China."

Guo reiterated a position first made on Oct. 30 after the New York Times wrote that US intelligence apparently found a businesswoman romantically linked to Huang was passing information to Beijing. State outlet Global Times likewise denied any official link to Huang's personal life, accused US media of spinning a false story, and said the New York Times in particular was "going crazy" with speculation.

Global Times argued that a few photos of Asian faces combined with Nvidia's prior push to ease China trade curbs helped fuel the narrative, writing, "This is precisely how American media, which have long styled themselves as 'objective,' manufacture stories." It warned that "Whenever China-US relations begin to improve, someone often fires a cold shot from behind," suggesting hidden efforts to stir confrontation without offering evidence. The paper cautioned that an "anti-China script" could hinder routine technology and trade ties and hurt both parties' interests.

The commentary also drew a parallel to 2023, when a Chinese balloon crossed US airspace and set off a diplomatic dispute. According to Beijing, a civilian airship primarily for meteorological research drifted from its path because of weather conditions; the U.S., however, labeled it a surveillance craft and later downed it over the ocean.

How Nvidia and Washington are responding

After conceding he had an extramarital relationship, Huang faced a flurry of articles alleging that a woman linked to him was suspected of spying for China. Over the past week, senior House Republicans sought a briefing from Huang about his dealings with Alice Huang - who also goes by Huang Le.

Nvidia's board said Sunday it is forming a committee of independent directors that will work with outside counsel to examine the case. The investigation follows claims that Alice Huang, a former Megaspeed International executive, had singled out Nvidia's leader. Megaspeed, headquartered in Singapore, faces allegations of violating U.S. export controls and illicitly funneling Nvidia chips to China.

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Donald Trump defended Huang, calling him a "fine person" and asserting that he ought to stay on as CEO. George Chen - who leads the digital practice as partner and chair at The Asia Group, a Washington-based advisory firm - said it's hard to picture Nvidia without Huang. "I don't think it will serve the best interests of Nvidia shareholders and industry partners either if Jensen suddenly quits tomorrow," he said. "There is little benefit in rushing to judgment before the facts are known," he added, advising investors and the wider technology community to maintain composure instead of responding in fear or on speculation.

Why it matters for markets

This controversy is unfolding just over a week before a planned sit down between Xi Jinping and US President Donald Trump at the Asia Pacific Economic Cooperation gathering in Shenzhen. It will be their third meeting, and investors will be looking for indications the delicate trade pause survives - particularly in the wake of the midterm elections, after which Trump's Republican Party no longer held control of Congress.

The stakes for AI are clear. Nvidia supplies chips central to AI computing and is among the world's most valuable companies. The incident adds headline risk to an AI market already unsettled by worries about softer data center spending. In plain English: shifts in tone from Beijing, Washington, or Nvidia's board could sway sentiment toward AI names in your portfolio.

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