China Nvidia spy narrative rejected by Beijing as row widens

The China Nvidia spy narrative drew a sharp rejection from Beijing on Thursday, which said its tech progress rests on innovation, not espionage.

Foreign Ministry spokeswoman Mao Ning spoke at a regular briefing in Beijing. Her remarks came as the Nvidia chief executive, Jensen Huang, faced a widening scandal.

What Beijing said on the China Nvidia spy narrative

Mao told reporters that Washington should stop fabricating the so-called Chinese spy narrative as a pretext for tech restrictions. She said China’s scientific progress rests on “independent innovation and open cooperation.”

Also, she attacked US limits on advanced chip exports. “We are against the US attempts to overstretch the concept of national security,” she said. She accused Washington of targeting Chinese companies with discriminatory rules.

Earlier this week, Beijing called the allegations “groundless speculation” and an attempt to smear China. Another outlet quoted Mao as saying Washington was using the spy claims to justify a technological blockade.

The allegations behind the China Nvidia spy narrative

US officials believe that Alice Huang, a former executive at the Singapore firm Megaspeed, worked for Chinese intelligence. Jensen Huang has said he had an extramarital affair, reportedly with her. The two share a surname but are not related.

Nvidia opened an independent investigation on Sunday into whether its chief executive was the target of a foreign intelligence effort. It added that it saw no sign that state or corporate secrets had leaked.

On Wednesday, a US newspaper said directors were readying to oust Huang. However, it added that they would meet as soon as that day to settle his fate. The reports did not say what the board decided.

Meanwhile, President Donald Trump played down Huang’s role. He said he believed the Nvidia chief did not know of any espionage motive. Alice Huang has made no public statement, and her whereabouts are unclear.

Megaspeed and the chip trade

Megaspeed grew into a major buyer in Asia of Nvidia chips, with analysts estimating purchases above $4 billion. Corporate records show Alibaba funded the firm. Investigators have also examined whether it gave Chinese companies unauthorised access to US chips.

Megaspeed has denied any wrongdoing and calls itself a compliant and legal company. Meanwhile, Nvidia has a market value near $4.5 trillion and makes leading AI processors.

Still, Huang has lobbied for years against limits on selling chips to China. Last year, Trump cleared Nvidia’s H200 chips for export there. Hawks in both US parties objected, because they fear Beijing could win the race for AI.

A summit next week

The row lands just before a Trump meeting with President Xi Jinping. Xi will host the US leader in Shenzhen, where Beijing is hosting the annual APEC summit.

A reporter asked Mao whether the scandal could affect that meeting. She replied that Beijing had set out its stance on the espionage narrative already. She added that Beijing and Washington stay in close communication about their leaders’ interactions.

In addition, Mao said China stood ready to work with the US to carry out the consensus that the two presidents reached. She called for a constructive relationship of strategic stability based on respect, fairness and reciprocity.

For now, the China Nvidia spy narrative leaves Nvidia’s board and US officials with the next move. Also, the China Nvidia spy narrative will test the tone of next week’s talks in Shenzhen. The allegations against Alice Huang remain unproven.