The sudden resignation of Jensen Huang, CEO of Nvidia, the world's most valuable artificial intelligence chip manufacturer, and the alleged Chinese espionage controversy have once again brought the technical and diplomatic tension between the world's two largest superpowers, America and China, to its peak. According to the big news coming out of Beijing on Friday, November 13, 2026, China has warned Washington in very strong words that the US should never use former Nvidia CEO Jensen Huang's relationship with an alleged Chinese spy as an excuse to further tighten export restrictions on critical and advanced technologies against China. According to a report in the prestigious international newspaper 'Financial Times', while talking to journalists in Beijing, Chinese Foreign Ministry spokesperson Mao Ning made a sharp attack on American policies. He said in clear words, "The US should immediately stop fabricating spy stories to find excuses for imposing a technical blockade against China." Mao Ning stressed that China's rapid technological progress is not dependent on anyone, but is based on its independent innovation and open global cooperation, and Beijing is fully prepared to maintain a constructive and strategic stability with the United States even today. What is the whole controversy and why did Nvidia co-founder Jensen Huang have to resign from the post of CEO? This aggressive statement of the Chinese Foreign Ministry came just hours before the resignation of Jensen Huang. Jensen Huang, who co-founded Nvidia in the year 1993 and with his vision took the company to the highest peak of the world of Artificial Intelligence (AI), on Thursday, November 12, 2026, resigned from all the posts of Chairman, CEO and member of the Board of Directors of the company with immediate effect. The roots of this entire incident are linked to the revelation that happened on Sunday, November 8, when Huang admitted that he had a personal relationship (affair) with Alice Huang. It is noteworthy that Alice Huang is a former executive of 'Megaspeed', a major data center firm based in Singapore, and American intelligence and security officials have strong suspicions that she was spying for China. Additionally, new media reports emerging Wednesday claimed that Jensen Huang also had an affair with a married healthcare executive at Nvidia who worked directly under him. However, the official announcement released by Nvidia did not mention any specific reason behind his leaving the post. Ahead of the meeting of Trump and Xi Jinping in Shenzhen, there is a serious threat to the 'Trade Truce'. This high-profile corporate and espionage scandal has also put the fragile trade peace between the US and China, i.e. 'Trade Truce', in deep danger. This dispute has emerged at a very sensitive time when the Asia-Pacific Economic Cooperation (APEC) summit is going to be held in China's major technological city Shenzhen next week. There is strong expectation of a bilateral meeting between US President Donald Trump and Chinese President Xi Jinping on this important global platform. Meanwhile, Washington has given a strong message to Beijing this week, warning that it will have to fulfill all the terms of the trade agreement signed between the top leaders of the two countries in South Korea last year, whose scheduled period is going to end on January 10. Washington's radicals got a new weapon, but separation from the Chinese market will also be fatal for Nvidia. Experts in international affairs and geopolitics believe that the Jensen Huang controversy will have a direct and deep impact on America's semiconductor and AI export policy. According to Zhu Feng, an international affairs expert from China's prestigious Nanjing University, President Trump's political opponents in the US can use this spying controversy as a big weapon to show his China policy as weak and failed. On the other hand, scholars associated with Chinese think-tanks have a strong fear that this development will provide a golden opportunity to Washington's 'Hawks' (anti-China radicals) to impose even stricter restrictions on technology exports against China. Homin Lee, senior macro strategist at global financial institution Lombard Odier, analyzes that China's technology industry is still largely dependent on Nvidia's powerful chips and its 'CUDA' software platform to build its advanced AI models. However, he also cautioned that if the Chinese tech ecosystem becomes completely isolated from the US due to US sanctions, in the long run it would also pose a huge existential threat to Nvidia's global business and monopoly. There was a huge stir in the stock market, shares of AI companies from Alibaba to Hong Kong crashed. The direct and negative impact of this sudden earthquake led by Nvidia and the fear of increasing export restrictions between America and China is clearly visible on the global stock market. Shares of major Chinese tech companies that depend on Nvidia's chips for advanced computing were sharply sold off and fell on Thursday. During trading, shares of China's leading e-commerce and cloud company Alibaba fell by a huge 6.8 percent. Additionally, shares of leading Hong Kong Stock Exchange-listed artificial intelligence model provider companies—'Z.ai' (Z.ai) and 'MiniMax'—saw a sharp decline of more than 9 percent and nearly 8 percent respectively, creating uncertainty among investors.
