Nvidia's former CEO Jensen Huang has resigned amid allegations of an affair with an alleged Chinese spy, escalating tensions between the U.S. and China. Huang agreed to testify before Congress before Thanksgiving on Nov. 26, 2026, following prolonged scrutiny from U.S. lawmakers. The incident has raised concerns about deteriorating relations, with a Beijing-based foreign policy researcher warning of a potential return to the 1990s-era espionage suspicions that strained ties.
The affair comes at a critical time, as the U.S. and China navigate a fragile trade truce. Analysts predict that the scandal will lead to stricter U.S. export controls on China, with Arthur Kroeber of Gavekal Dragonomics suggesting that Congress may tighten rules before the end of the year. China's Foreign Ministry dismissed the allegations as unfounded smears, urging the U.S. to stop using espionage narratives to justify technology restrictions.
Meanwhile, the political landscape in the U.S. has shifted following the Democrats' sweep of the midterm elections on Nov. 3, 2026. The timing of the allegations has raised eyebrows, with some suggesting it is no coincidence that the reports emerged shortly after the elections. Analysts like Mitch Presnick of the Asia Society's Center for China Analysis argue that the U.S. is focusing on espionage to deflect from discussions about American competitiveness.
Looking ahead, the upcoming meeting between U.S. President Donald Trump and Chinese President Xi Jinping at the APEC Economic Leaders' Meeting in Shenzhen from Nov. 18 to 19, 2026, will be closely watched. Analysts expect the two leaders to maintain an uneasy truce, but tensions are likely to persist as both countries navigate technological decoupling and self-reliance.