World · East Asia & Pacific · 13 hrs ago

Nvidia scandal puts chip controls in focus ahead of Trump's Asia trip

Nvidia scandal puts chip controls in focus ahead of Trump's Asia trip

Jensen Huang left Nvidia's CEO role after acknowledging an extramarital relationship with Alice Huang, a former Megaspeed executive whom the US suspects of spying for China; Beijing denies the allegation.

Megaspeed is accused of helping Chinese clients access Nvidia chips through remote servers in Malaysia and Indonesia, and of diverting some chips to China.

The case has raised questions about how US export limits are enforced, as Washington seeks to restrict China's access to advanced AI technology.

US lawmakers are pressing for tighter chip controls, while Treasury Secretary Scott Bessent has blamed the Commerce Department for not adding Megaspeed to an export blacklist.

Trump is due to meet Xi Jinping in China next week, after meetings with Southeast Asian leaders in the Philippines.

The White House says Trump does not plan to confront Xi about the scandal, while aides are considering steps to close gaps in existing restrictions, including limits on remote access to chips.

6 sources

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What people are saying

Donald TrumpUS president
honourable
via Straits Times
Lian Jye Suchief analyst at Omdia
The scandal, in many ways, synthesizes the rivalry, in which national security issues, export controls and foreign policy are intertwined.
via Estadão
Shaoyu Yuanassistant professor at New York University’s Center for Global Affairs
I don’t think anyone in Washington wants to be seen, at this moment, as someone who is easing controls on chip exports to China.
via Estadão