New Delhi: Barely a week after a controversy involving Nvidia and alleged Chinese intelligence links put America’s restrictions on advanced chip exports back in the spotlight, the US president, Donald Trump, is set to travel to China next week for talks expected to cover nuclear arms reduction and the Iran war. The White House does not plan to raise the Nvidia affair with the Chinese president, Xi Jinping, the Associated Press reported, treating export controls as a national security matter and not a subject for the talks, even as questions about how restricted chips reach Chinese buyers follow Trump to the summit.
The scandal involves the former Nvidia chief executive Jensen Huang’s alleged extramarital affair with Alice Huang, who US agencies reportedly suspect of working for Chinese intelligence. Her company, Megaspeed, was also accused of sending advanced Nvidia chips to China last year.
The developments have renewed scrutiny of the networks through which restricted American technology could reach Chinese buyers. They also come as Washington examines ways to strengthen controls on China’s access to advanced processors and computing services.
US chip restrictions
Washington has been trying to restrict China’s access to advanced American chips since October 2022. The US introduced export controls on high-performance processors and semiconductor manufacturing equipment, citing concerns over their potential military applications.
The restrictions were tightened in October 2023 and again in December 2024 to cover more advanced chips, manufacturing equipment and related technology. The measures were aimed at preventing China from accessing computing capabilities that could strengthen its military and AI development.
The Nvidia scandal has raised fresh concerns over China’s access to advanced American chips. The former Nvidia chief executive Jensen Huang has admitted to an extramarital affair with Alice Huang, an executive at Megaspeed. US agencies reportedly suspect her of working for Chinese intelligence and gathering information for Beijing.
Megaspeed’s role in the movement of Nvidia processors has also come under scrutiny. The case raises questions about how restricted chips could reach Chinese buyers despite tighter US export controls.
The controversy adds to tensions ahead of Trump’s meeting with Xi. Although Trump does not plan to raise the issue directly, China’s access to American chips remains a major concern for Washington.
AI rivalry shapes US-China relations
The dispute comes amid growing competition between Washington and Beijing over artificial intelligence and advanced computing. Nvidia processors are widely used to train and operate AI models. They also power high-performance computing systems with applications in defence and military technology.
The US wants to preserve its technological advantage by limiting China’s access to its most advanced processors. China, meanwhile, is investing in domestic semiconductor manufacturing and developing alternatives to foreign technology.
Advanced chips have consequently become a strategic asset for both countries. Their importance extends beyond commercial sales to technological leadership, military capabilities and economic competitiveness.
The Nvidia controversy highlights the difficulty of enforcing restrictions in an industry where companies, suppliers and computing infrastructure operate across international borders. The US and China remain connected through trade and technology, even as their competition over artificial intelligence increasingly shapes national security policies.
Musk joins Trump’s Asia delegation
Meanwhile, Trump is taking the Tesla and SpaceX chief executive, Elon Musk, on his Asia trip. Administration officials told the Associated Press that Musk’s economic and national security interests make him a valuable adviser during the visit.
Trump is scheduled to travel to Manila on Tuesday for meetings with leaders of the Association of Southeast Asian Nations. His itinerary also includes discussions on a trade agreement with Thailand and meetings with leaders of the Quad, comprising the US, India, Australia and Japan.
On Wednesday, Trump is expected to travel to Shenzhen for the Asia-Pacific Economic Cooperation meetings. He will meet Xi before joining the Chinese president and the Russian president, Vladimir Putin, for a trilateral meeting.