Nvidia scandal exposes US gaps in countering Chinese economic espionage

The resignation of Nvidia chief Jensen Huang amid allegations of a relationship with a suspected Chinese intelligence asset has spotlighted US vulnerabilities to economic espionage, with former intelligence officials saying Washington is not doing enough to counter it. China's Ministry of State Security reportedly uses "honey trap" tactics to compromise American businessmen and officials, a method former CIA officer Dennis Wilder says remains frequent and increasingly bold. Multiple investigations are underway into Huang's relationship with tech executive Alice Huang, including whether her company smuggled Nvidia's highest-powered chips into China despite export restrictions. Former officials criticize the US response as haphazard, noting President Donald Trump expressed personal support for Huang while showing uncertainty about when he was briefed on the allegations. China denies the spying claims as "smears," while experts warn the US lacks a coherent strategy comparable to Cold War-era pushback against Soviet espionage.