China calls Nvidia spy plot claims baseless as Huang discloses relationship with Beijing-linked executive

Jensen Huang, the chief executive of Nvidia, disclosed to the company's board of directors that he had a close personal relationship with a business executive. United States intelligence agencies determined that the woman was collecting information for Beijing. Nvidia announced on Sunday that it would launch an internal investigation into the matter.

China's Foreign Ministry spokesperson Guo Jiakun dismissed the reports on Monday. He stated that the accusation of a Chinese spy plot lacked a foundation and called the claims mere slander against the country. The Chinese government denied that any attempt existed to trap Huang through espionage.

The revelation places the head of one of the world's most valuable public companies at the center of a dispute over advanced chip sales. Nvidia competes with Apple and Microsoft for the top spot in global market capitalization. The core issue involves whether Huang pushed for the sale of advanced computing chips to China while adhering to US technological restrictions designed to limit Beijing's access to cutting-edge hardware.

The New York Times reported that Huang developed a close relationship with Alice Huang, a Chinese citizen. She led a firm that faced charges of smuggling advanced chips into China. US officials identified her as a spy for Beijing. The report did not specify whether Huang knew about the espionage activities or if confidential strategic information was compromised.

George Chen, a partner and digital practice president at the Washington-based consultancy The Asia Group, noted that the critical questions require evidence rather than speculation. He emphasized the need to determine if Huang was aware of any spy activity and if sensitive data was shared.

Huang has spent recent years lobbying for relaxed export controls. He successfully urged President Donald Trump to allow Nvidia to sell H200 chips to China this year. It remains unclear if Beijing will permit Chinese firms to purchase these processors in large volumes. These chips are not the most advanced models from the company but remain sophisticated technology.

Previously, Huang also lobbied Trump to approve the sale of H20 chips. These less advanced units were designed for the Chinese market and met US export restriction criteria. The company's ability to sell these products has been a focal point of trade negotiations between the two economic powers.

Chinese state media have focused heavily on Huang's admission of the relationship. Outlets have largely repeated the official government line that the New York Times report aimed to destabilize US-China relations. The Global Times, a state-backed daily, published a comment stating that whenever relations between the two countries begin to improve, others often fire from the shadows.

Nvidia has not identified the individual involved in the relationship beyond the description provided in the initial reporting. The company is currently reviewing the facts to determine the scope of the potential breach. The outcome of the internal probe will likely influence future negotiations regarding chip exports.

The dispute highlights the friction between US efforts to maintain a technological edge and the commercial interests of major semiconductor firms. Huang's position as a key figure in global tech policy adds a personal dimension to the trade battle. Market observers are watching for further disclosures as the investigation proceeds.