How the Jensen Huang affair changes the outlook for U.S.-China relations

A scandal involving former Nvidia CEO Jensen Huang and a Chinese spy has heightened tensions between the world's two largest economies. Nvidia's Huang resigned Thursday and is set to testify before Congress before the Thanksgiving holiday on November 26. House Foreign Affairs Chair Brian Mast indicated there could be "public hearings for other people or other things down the road."

A Beijing-based foreign policy researcher expressed concern that the incident could significantly deteriorate the atmosphere in Washington, affecting not only China but also export control matters and the Trump administration's approach to China. The researcher warned of a potential return to a situation similar to the 1990s when a Chinese-American nuclear physicist faced federal prosecution for allegedly sharing nuclear secrets with China.

The incident has also reignited concerns about U.S.-China relations, which were already under pressure following the imposition of semiconductor export restrictions on China in 2022. While the Trump administration eased many Biden-era restrictions in 2025, Nvidia's Huang advocated his views across various markets, including the U.S., China, Taiwan, and Germany. The two presidents are expected to meet again at the APEC Economic Leaders' Meeting in Shenzhen, China, from November 18 to 19.

Analysts predict that the scandal will lead to more U.S. restrictions on China, with Congress potentially tightening export controls before the end of the year. China's Foreign Ministry dismissed the "Chinese spy" allegation as unfounded smears against China. However, the ongoing tensions and the possibility of further restrictions have raised concerns about the decoupling of the U.S. and China economies.

Some experts believe that China may double down on its self-reliance in technology, such as the rare earths and chipmaking materials, should the U.S. continue to impose stricter controls.