Donald Trump said intelligence gathering between the U.S. and China is a mutual practice, stating the U.S. “do[es] it well too” in response to allegations that Nvidia CEO Jensen Huang had an affair with a suspected Chinese intelligence agent. Trump characterized the scandal involving Huang as “horrible” and “sad to see,” though he noted that “deals can be cut” before he meets with President Xi Jinping next week, despite his intention to use his veto power on certain administrative matters.
The remarks come as the Trump administration weighs new curbs on semiconductor exports following reports that officials had long scrutinized Huang for advocating for fewer restrictions on sales to China. The U.S. Commerce Department is now finalizing a rule to close a “remote access loophole” that allowed Chinese labs to rent Nvidia GPUs in other countries. The new rule expands export licensing requirements to 7 nations, including Singapore, Brazil, and Malaysia, while China’s foreign ministry has called the spy allegations a fabricated pretext for a technology blockade.