Nvidia scandal intensifies US-China AI rivalry ahead of Trump-Xi meeting

A scandal involving former Nvidia CEO Jensen Huang and a suspected Chinese spy is intensifying the U.S.-China AI rivalry as President Donald Trump prepares to meet President Xi Jinping next week, prompting bipartisan calls in Congress for tighter technology export restrictions. Lawmakers are seizing on the affair to press for stricter controls on advanced chip exports to China, with several Democrats demanding an immediate halt and a review of licenses. The Senate defense bill includes provisions to track AI chips and compel allies to match U.S. restrictions, while Beijing has dismissed the spy allegations as unsubstantiated. Trump does not plan to confront Xi on the issue, and U.S. officials do not expect Chinese retaliation. The scandal could complicate U.S.-China AI safety talks, while analysts say it may accelerate China's push for domestic chip self-reliance, though Nvidia's cutting-edge chips remain crucial for many Chinese firms.