China Denies Allegations It Spied on Nvidia CEO Jensen Huang

China dismissed claims that it tried to entrap and spy on Nvidia chief executive Jensen Huang, calling the reports baseless and part of a smear campaign, after Huang disclosed a close personal relationship he had not previously named.

Chinese government response

At a Tuesday press briefing, foreign ministry spokesman Guo Jiakun rejected allegations that China had used a spy against Huang. Guo said, "The so-called allegation that China used a spy is baseless. These claims are nothing but a smear campaign against China." Chinese state media largely emphasized Huang's admission of the relationship and echoed the government's line, with the Global Times saying, "Whenever China-US relations begin to improve, there are those who fire from the shadows."

Nvidia investigation and market reaction

Nvidia said on Sunday it had opened an independent investigation following reports that U.S. intelligence agencies had concluded the woman involved, reportedly named Alice Huang, collected information for Beijing. The company did not elaborate further on the probe.

Huang earlier published an open letter on Nvidia's website admitting to a close, emotional relationship with another woman, apologizing to his wife and to the company, and saying he would cooperate with any inquiry. He wrote, "I support these investigations and will cooperate fully. I love our country and our company and am committed to protecting Nvidia and supporting US national security."

The reports and the investigation triggered market movement: Nvidia's shares fell about 5 percent in premarket trading early Monday. Nvidia, alongside Apple and Microsoft, ranks among the world's most valuable public companies. Sales of its processors to China have been subject to long-running U.S. regulatory limits aimed at restricting Beijing's access to advanced technologies.

George Chen, a partner and head of digital at The Asia Group in Washington, said the central questions are "whether he was aware of any espionage activity, and whether classified or sensitive information was leaked." He added that "these questions require evidence, not speculation."

Alice Huang, Megaspeed International, and chip export questions

Reports earlier named a Chinese citizen, identified as Alice Huang, as the woman linked to Huang. Beijing had previously denied reports that Huang had formed a close relationship with this person. U.S. reports said Alice Huang once led a company that was accused last year of illegally shipping advanced Nvidia chips to China.

According to the New York Times, Alice Huang is a former executive of Singapore-based data center company Megaspeed International, whose website highlights a partnership with Nvidia. On Monday many Singapore offices were closed for a public holiday, and Megaspeed and Singapore's Ministry of Home Affairs did not respond to requests for comment.

Huang has in recent years lobbied Washington to ease limits on Nvidia chip sales to China and secured approval from President Donald Trump to sell H200 processors earlier this year. It remains unclear whether Beijing will allow Chinese buyers to acquire those processors at scale. In its August financial report, Nvidia said it had sold only a small amount of those products to China because of Chinese government restrictions.