China’s Foreign Ministry on Thursday dismissed allegations that Nvidia CEO Jensen Huang was targeted by a Chinese intelligence operative, and told Washington to stop using the affair as a justification for technology restrictions.
“The United States should stop fabricating the false narrative of Chinese spies as a pretext for imposing technology restrictions,” ministry spokesperson Mao Ning said at a briefing in Beijing. “China’s scientific advancement is based on independent innovation and open cooperation.”
The statement was Beijing’s second on the affair this week. On Monday, spokesperson Guo Jiakun called the spy allegation “purely unsubstantiated and directed at smearing China.”
The allegations
The scandal centers on Alice Huang, also known by her Chinese name Huang Le, a 43-year-old Chinese citizen and former executive at Megaspeed International, a Singapore-based company that bought large quantities of Nvidia’s advanced AI chips. She is not related to Jensen Huang.
The New York Times reported that US intelligence officials believe she was recruited by China’s Ministry of State Security to gather information on the Nvidia chief, and that the two had a romantic relationship. According to the reports, Secretary of State Marco Rubio drafted a highly classified memo in the spring warning about the relationship. The memo circulated among senior officials before President Donald Trump’s May trip to China, on which Huang accompanied him.
The two were seen together at Computex in Taiwan in 2024, after Megaspeed committed to buying about $2 billion worth of Nvidia chips, and again in 2025.
Megaspeed itself has been under scrutiny. The Commerce Department investigated whether the company helped Chinese firms circumvent US export controls, and later referred its findings to the Justice Department. Singapore police have confirmed a separate investigation. Megaspeed denies illegally transferring chips to China and says it complies with all applicable laws, including US export regulations.
Alice Huang’s current whereabouts are unknown, and she has made no public statement.
Huang’s admission and the second report
Over the weekend, Jensen Huang acknowledged in a company-wide memo that he had been unfaithful to his wife of 41 years, Lori Huang, without naming the other party. Nvidia’s board launched an independent investigation into whether he had been the target of a foreign intelligence effort. At the time, the board said it had no reason to believe national security or company secrets were compromised, and expressed confidence in Huang.
On Wednesday, the Times reported that Huang also had a relationship with Kimberly Powell, Nvidia’s vice president of health care and one of his direct reports. According to the report, the two were seen embracing at a San Jose hotel during Nvidia’s developer conference in March, and Huang’s security team offered the person who recorded the encounter a nondisclosure agreement. Both are married to other people.
Hours later, The Wall Street Journal reported that the board was preparing to oust Huang. Reuters confirmed that the board met late Wednesday to decide his future. As of Thursday, no decision had been announced.
Market fallout and political pressure
Nvidia shares fell more than 8% in after-hours trading Wednesday, and the company has lost more than $600 billion in market value this week.
Trump said the FBI is investigating the affair, while playing down Huang’s own culpability. The chairmen of the House China, Foreign Affairs and Intelligence committees have requested a closed-door briefing from Huang. Investors have filed a class action lawsuit accusing Nvidia and Huang of concealing his ties to a suspected spy.
Huang, 63, co-founded Nvidia in 1993 and has led it ever since. The company is due to report quarterly earnings on November 17.
