Trump-Xi Meeting Complicated by Nvidia Spy Scandal and AI Export Tensions

A scandal involving former Nvidia CEO Jensen Huang and a suspected Chinese spy is intensifying U.S.-China tensions over AI chip exports, threatening to complicate President Donald Trump's upcoming meeting with Chinese President Xi Jinping next week. Lawmakers are demanding stricter controls on advanced technology sales. The affair has given congressional proponents of tighter export restrictions a new focal point, with Democrats requesting a halt to advanced AI chip exports to China and both parties backing legislation to review licenses and track chip shipments. Beijing has dismissed the spy allegations as fabricated and warned against using the episode to impose new restrictions. The U.S. and China have been pursuing common ground on AI safety, including a proposed hotline for national security incidents, but analysts say the scandal could disrupt these talks. The controversy may also accelerate China's push for domestic chip self-reliance, as Nvidia's sales to China have already plummeted due to existing export limits.