Nvidia scandal deepens U.S. clash over China policy

The Nvidia scandal has emerged as a major complication for Donald Trump's foreign policy, intensifying an internal U.S. government clash over how to handle China. The controversy pits the president's more conciliatory stance against hardliners in Washington who favor maintaining strict measures. At the center is Nvidia CEO Jensen Huang, a vocal advocate for keeping trade channels open with Beijing, arguing that export bans on advanced microchips would only boost China's domestic industry. Commerce Secretary Howard Lutnick, Huang's ally, faces accusations from Treasury Secretary Scott Bessent and Republican Senator Jim Banks of failing to enforce sanctions against Singaporean firm Megaspeed, allegedly involved in shipping chips to China. The dispute threatens Trump's broader diplomatic pivot toward stabilizing economic ties with Beijing, following his failed tariff strategy in 2025 and his May summit with Xi Jinping. This internal friction complicates efforts to build a trilateral dialogue with China and Russia, as pro-détente factions find themselves on the defensive.