China has accused the United States of using what it described as fabricated espionage allegations to justify further restrictions on China's access to advanced technology. The latest diplomatic exchange follows reports involving Nvidia Chief Executive Officer Jensen Huang and a Chinese businesswoman who was allegedly linked to an intelligence operation.
Speaking at a regular press briefing in Beijing on November 12, Chinese Foreign Ministry spokesperson Mao Ning urged Washington not to use the so-called spy narrative as a reason to impose additional technology restrictions. She said China's scientific and technological development was based on independent innovation and open cooperation.
The statement reflects growing tensions between the world's two largest economies over artificial intelligence, semiconductor technology and national security.
China Rejects Allegations Involving Nvidia CEO
The controversy centres on reports concerning Jensen Huang, the co-founder and CEO of Nvidia, and Alice Huang, a former executive associated with Singapore-based cloud computing company Megaspeed. The two individuals are not related.
A report by The New York Times alleged that Alice Huang had a relationship with Jensen Huang and that US authorities believed she was connected to Chinese intelligence. The allegations have attracted attention because Megaspeed has faced scrutiny over suspicions that it helped Chinese customers obtain advanced Nvidia processors that are subject to US export restrictions.
China has strongly rejected the espionage claims. Its Foreign Ministry has described the allegations as groundless and a smear against the country.
Importantly, the reported intelligence assessment has not been independently verified by Reuters. The allegations should therefore not be treated as an established finding that Alice Huang acted as a Chinese intelligence operative.
What Did the Chinese Foreign Ministry Say?
During the November 12 briefing, spokesperson Mao Ning said the United States should stop fabricating what she called the Chinese spy narrative and using it as a pretext for imposing a technological blockade.
She also emphasised that China's progress in science and technology comes from its own innovation and cooperation with international partners. Beijing, she said, remains willing to work with Washington based on the understanding reached by the two countries' leaders.
The comments indicate China's concern that the espionage controversy could be used to build political support for additional restrictions on Chinese technology companies.
Beijing has repeatedly opposed US measures that limit its access to advanced semiconductors and related technologies. Chinese officials argue that such restrictions affect fair international trade and hinder technological cooperation.
Washington, on the other hand, has defended several export-control measures on national security grounds, arguing that access to advanced computing technology can have military as well as commercial applications.
Why Are Nvidia Chips at the Centre of the Dispute?
Nvidia is one of the world's leading suppliers of graphics processing units used in artificial intelligence development. Its processors are widely used to train and operate advanced AI models, generative AI applications and large-scale computing systems.
Access to these chips has become a major issue in US-China relations. Washington has introduced restrictions on the export of certain advanced Nvidia processors to China, citing concerns about national security and the possible military applications of high-performance computing technology.
Chinese technology companies, meanwhile, require powerful processors to develop AI products and compete with international technology businesses.
The dispute has also raised questions about overseas data centres and remote access to restricted processors. Chinese companies can potentially rent computing capacity at data centres outside China rather than importing the physical chips directly. US lawmakers are considering measures that could give authorities greater oversight of such access.
Reuters reported on November 12 that Chinese AI companies were exploring ways to reserve Nvidia-powered computing capacity at overseas data centres amid fears that the controversy could encourage Washington to tighten restrictions.
Nvidia Board Launches an Independent Review
The allegations have also brought attention to Nvidia's internal response. The company announced that its board was initiating an independent investigation following reports that Jensen Huang may have been the target of a foreign intelligence effort.
Nvidia said a committee of independent directors, supported by external legal advisers, would oversee the review. The company also stated that its board had confidence in Huang and its leadership team.
Huang acknowledged having an extramarital relationship and told employees that he took responsibility for his actions. However, the personal admission does not establish the espionage allegations involving the woman concerned.
US President Donald Trump said he had spoken with Huang and that the Nvidia chief had told him he did not know the woman was allegedly connected to Chinese intelligence. Trump also expressed support for Huang.
The investigation's findings have not been publicly established, and the allegations remain a subject of scrutiny.
US Lawmakers Seek Stronger Technology Restrictions
The controversy has added to an existing debate in Washington over whether the United States should tighten controls on China's access to advanced artificial intelligence processors.
Reuters reported that US lawmakers and technology policy advocates believe the allegations could increase support for legislation designed to restrict China's access to advanced chips.
Among the measures under discussion are the AI Overwatch Act, the Chip Security Act and the MATCH Act. These proposals address different aspects of semiconductor exports, chip tracking and restrictions on technology-related equipment supplied to China.
Supporters argue that stronger oversight is necessary to prevent advanced processors from reaching unauthorised users. They say improved tracking and export controls could help protect sensitive technology.
However, some industry groups have raised concerns that additional restrictions could weaken the competitiveness of US technology companies and complicate international business operations.
The debate is not limited to the allegations involving Huang. It is part of a wider policy disagreement over how the United States should balance national security concerns with the commercial interests of its semiconductor industry.
Diplomatic Tensions Ahead of Expected Trump-Xi Meeting
The latest comments from Beijing come as the United States and China prepare for further high-level diplomatic engagement. Reports indicate that US President Donald Trump and Chinese President Xi Jinping are expected to meet during the upcoming Asia-Pacific Economic Cooperation gathering in Shenzhen.
The meeting could provide an opportunity for both governments to discuss trade, technology restrictions and wider economic relations.
China has said it remains willing to cooperate with the United States, while opposing what it considers discriminatory measures against its technology sector. Washington continues to focus on limiting the transfer of sensitive technologies that it believes could create national security risks.
Whether the Nvidia controversy will become part of the leaders' discussions remains uncertain. China's Foreign Ministry has not confirmed that the issue will be specifically raised during the meeting.
What Happens Next?
The dispute highlights how a controversy involving a major technology executive can become part of a much wider geopolitical debate. China views the allegations as an attempt to justify restrictions on its technological development, while US officials and lawmakers continue to examine concerns surrounding access to advanced AI chips.
The next developments will depend on the findings of Nvidia's independent review, any further information released by US authorities and the progress of proposed legislation in Congress.
For now, China has firmly rejected the espionage narrative and called on Washington to avoid using the allegations as a justification for additional technology restrictions. The United States has yet to announce a new policy change directly linked to China's latest statement.
The wider US-China technology dispute is likely to remain an important issue for semiconductor companies, AI developers and international businesses as both countries compete for leadership in advanced computing.
