Nvidia scandal escalates U.S.-China AI rivalry ahead of Trump-Xi meeting

The scandal leading to former Nvidia CEO Jensen Huang's resignation is intensifying the U.S.-China AI rivalry, as lawmakers push for tighter chip export restrictions ahead of President Trump's meeting with President Xi Jinping next week. Congressional Democrats have demanded a halt to advanced AI chip exports to China, while a Senate defense bill proposes reviewing licenses and tracking chips. Beijing has warned against using the affair as a pretext for new restrictions, calling the "Chinese spy" narrative fabricated. The affair involved Alice Huang, a former executive suspected by U.S. officials of being a Chinese spy, though Beijing refutes this. Trump does not plan to confront Xi on the issue, but the scandal may complicate U.S.-China AI safety talks and accelerate China's domestic chip industry efforts.