China warns against new U.S. export controls on chips in wake of Nvidia's Huang scandal

Key Points:

• China has warned the U.S. against imposing additional semiconductor export controls, stating such measures disrupt global supply chains and harm all parties involved, urging cooperation to maintain stable China-U.S. economic relations.
• Nvidia's former CEO Jensen Huang resigned amid a scandal involving an affair with Alice Huang, a former executive at Singapore-based Megaspeed, who is alleged to be a Chinese intelligence asset.
• U.S. Commerce Secretary Howard Lutnick faces criticism over potential conflicts of interest and oversight failures related to Nvidia's AI chip sales and the failure to place Megaspeed on the Entity List, which restricts access to U.S. technology.
• Treasury Secretary Scott Bessent and other U.S. agencies supported adding Megaspeed to the Entity List, but the Commerce Department's Bureau of Industry and Security held decision authority and did not act, prompting calls for accountability.
• Congressional leaders, including House Speaker Mike Johnson, are increasingly advocating for tighter controls on chip exports to China amid intelligence suggesting espionage activities linked to Alice Huang.