Jensen Huang’s Nvidia exit ahead of APEC: Could the China spy controversy complicate Trump’s meeting with Xi Jinping?

Nvidia, the world's largest semiconductor company by market capitalisation, is facing a scandal involving its CEO, Jensen Huang. Allegations suggest Huang may have been involved in extramarital affairs with a Chinese businesswoman, Alice Huang, suspected by US officials of having ties to Chinese intelligence. Huang acknowledged being unfaithful but did not name the alleged partner.

The controversy has led to Huang's resignation as Nvidia's CEO. The scandal surfaces just days before a crucial meeting between US President Donald Trump and Chinese President Xi Jinping at the APEC Economic Leaders Meeting in Shenzhen. The allegations could complicate the high-stakes engagement, especially considering tensions over semiconductor exports, AI, and technology competition.

US officials have not confirmed whether Alice Huang is a spy, and the FBI is investigating reports of her alleged links to the Chinese government. Despite the controversy, Trump has not publicly denied knowledge of the matter and has expressed sympathy for Huang, who has grown increasingly close to him. Nvidia's advanced AI chips are central to the global AI race, making access to them a significant point of contention between Washington and Beijing.

Huang had urged the US to ease restrictions on chip sales to China, with the company's CEO advocating for broader access to the technology to help maintain its lead in AI development. The controversy could increase pressure on the administration to scrutinize Nvidia's China sales and consider stricter limits on advanced AI chip exports, although analysts suggest it is unlikely to immediately alter Trump's approach to Beijing.