China rejects spy allegations against Nvidia CEO Jensen Huang, accuses US media of smearing Beijing

China has rejected allegations linking Beijing to an alleged espionage operation involving Nvidia chief executive Jensen Huang, accusing American media of promoting a fabricated spy narrative around his admitted extramarital affair.

The response came after state-run newspaper Global Times criticised US media coverage of the controversy, arguing that reports combining Huang’s personal life with allegations of Chinese espionage were intended to fuel tensions between the two countries.

At a regular briefing on Monday, Chinese foreign ministry spokesperson Guo Jiakun dismissed the allegations, saying: “We have responded to this matter previously. The narrative of a so-called Chinese spy is entirely baseless vilification and smearing.”

The newspaper also warned that the controversy could undermine efforts to improve China-US relations and disrupt technology and trade exchanges between the two countries.

Global Times accuses US media of fuelling tensions

In its commentary, Global Times argued that American media outlets had gone beyond reporting on a personal matter by combining the profile of a prominent corporate executive, an extramarital affair and allegations of espionage to create a media frenzy.

It said the claims were based largely on a “speculative report” published by The New York Times, which alleged that the woman involved in Huang’s affair was a Chinese spy.

The newspaper questioned the basis of the allegations, claiming they relied on photographs of a “woman with Asian features”, Nvidia’s previous efforts to ease trade restrictions on China and anonymous tips.

“Similar situations have repeatedly occurred in the past: Whenever China-US relations begin to improve, there are often those firing shots from the shadows,” the Global Times said.

Drawing a parallel with the 2023 Chinese balloon dispute, which triggered a diplomatic standoff between Washington and Beijing, the newspaper argued that the controversy surrounding Huang should be treated as an internal US corporate and personal matter.

It also cautioned that an “anti-China script” could interfere with normal technology and trade exchanges, ultimately harming the interests of both countries.

Nvidia launches independent investigation

The controversy intensified after Nvidia’s board announced on Sunday that it was initiating an independent investigation into reports that Huang had been targeted by a foreign intelligence operation.

The decision followed a New York Times report last month alleging that US intelligence officials had concluded that Alice Huang, a Chinese executive associated with Singapore-based data centre company Megaspeed, had been passing information to Beijing.

The report also alleged that Alice Huang had developed a close relationship with the Nvidia chief. Megaspeed, which purchases Nvidia's artificial intelligence chips, has faced scrutiny over suspicions that it helped China obtain advanced chips restricted under US export controls.

Nvidia said a committee of independent directors, assisted by external legal counsel, would oversee the investigation. The board added that it had no reason to believe that US national security or the company's confidential information had been compromised, but would examine all available information.

Huang has supported the investigation and agreed to cooperate fully. The company has also indicated that he will continue to lead Nvidia as chief executive without interruption.

Huang acknowledges affair and apologises

In a message to employees released on Sunday, Huang acknowledged having an extramarital affair and apologised to his family and colleagues.

He accepted responsibility for his actions and the hurt caused, saying he had been unfaithful to his wife. He did not identify the woman involved in the message.

The Nvidia chief also reaffirmed his commitment to the company and said he would work to regain the confidence of employees, partners and shareholders.

The allegations have drawn attention in Washington as well. Senior Republican lawmakers in the US House of Representatives have sought a briefing from Huang over his reported dealings with Alice Huang and the national security concerns raised by the allegations.

China had previously rejected the espionage claims. On October 30, Guo described the New York Times report as unsubstantiated and said it amounted to smears against Beijing.

The dispute comes amid wider tensions over US restrictions on advanced semiconductor exports to China and Nvidia’s efforts to retain access to the Chinese market. Huang has previously advocated easing restrictions on chip sales to China, including lobbying for permission to sell certain Nvidia processors there.

The latest controversy has therefore raised questions about the intersection of corporate interests, national security and the technology rivalry between Washington and Beijing, even as China insists that the allegations against it are baseless.