Nvidia scandal may test fragile US-China truce, experts say
The fallout from the Nvidia scandal may test the fragile truce between the US and China, analysts say, as calls in Washington grow to tighten semiconductor export controls just days before US President Donald Trump is due to meet Chinese leader Xi Jinping in Shenzhen, China. “I think that [scandal] could have a bigger impact down the line during the meeting in Miami or even further down the…
A scandal involving Nvidia could potentially strain the fragile US-China relationship, according to experts. With calls in Washington to tighten semiconductor export controls just days before US President Donald Trump is set to meet Chinese leader Xi Jinping, tensions are mounting. Ilaria Mazzocco, a senior fellow at the Centre for Strategic and International Studies, believes the scandal could have a bigger impact during the meeting in Miami, where Trump is expected to meet Xi in December.
George Chen, a Partner and Chair at The Asia Group, warns that the scandal could deepen mistrust between the US and China at a sensitive moment in their relations. Despite the controversy, some experts argue that the meeting in Shenzhen won't be significantly affected, as Trump has publicly backed Nvidia CEO Jensen Huang and maintained efforts to build a closer relationship with Xi.
Huang admitted to being unfaithful to his wife and agreed to cooperate with the inquiry. Chinese officials have denounced the allegations as baseless. Nvidia's board launched an investigation after a New York Times report linked Huang to a suspected Chinese spy. Lawmakers are pressing for an investigation and have summoned Huang for a closed-door briefing.
While Congress can push for tighter export controls, it remains uncertain whether President Trump will heed the pressure to change his stance.
Written by urgent.news from Reuters Business via SCMP's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
