China's Ministry of Foreign Affairs on Friday warned the United States against implementing new export controls on semiconductors. The statement followed the resignation of Nvidia CEO Jensen Huang on Thursday and reports involving Alice Huang, a former executive at Singapore-based Megaspeed.
The warning comes as U.S. lawmakers call for stricter limits on the sale of chip-making equipment to China. Foreign Ministry spokesperson Mao Ning stated that China opposes the use of export controls that disrupt global supply chains. Mao urged both nations to maintain stable economic relations based on previous agreements between their heads of state.
The controversy centers on Jensen Huang's admission of an affair with Alice Huang, whom U.S. intelligence officials alleged in a memo last spring was an operative for China’s Ministry of State Security. While President Trump was reportedly briefed on these allegations a year ago, the New York Times reported he chose not to act at that time. Beijing has denied the spying allegations, characterizing them as a pretext for a technological blockade against its artificial intelligence development.
The situation also directly affects federal leadership at the Department of Commerce. Critics are questioning whether Commerce Secretary Howard Lutnick’s personal ties to Jensen Huang or Chinese companies resulted in a lack of regulatory oversight. This could lead to changes in how the federal government monitors high-tech exports, potentially slowing the approval process for international trade deals involving sensitive AI hardware. A change in policy would be noticed by tech companies in their quarterly revenue reports and by federal contractors subject to new compliance audits.
The knock-on effects involve a potential shift in U.S. intelligence and trade policy regarding foreign influence. Republican lawmakers are currently pushing for both Jensen Huang and Howard Lutnick to testify before Congress. Additionally, Nvidia and Huang face a shareholder lawsuit related to the affair. What happens next depends on congressional hearings and whether the Commerce Department issues new formal restrictions; however, no specific dates for a vote or new regulations were reported.