U.S. Congress turns its sights on Jensen Huang as China chip export controls gain momentum

【Lee Byung-chul, Financial News correspondent in New York】  As suspicions grow that Chinese intelligence agencies approached NVIDIA CEO Jensen Huang, the U.S. Congress is zeroing in on NVIDIA. Congress is expected to use the case to accelerate legislation controlling exports of AI semiconductors to China. Lawmakers and advocacy groups say the prospects for such legislation have improved.
In an email sent to employees on the 8th (local time), Huang acknowledged having an affair. The New York Times (NYT) and other outlets reported that the other person was Alice Huang, a former executive at Singapore-based data center company Megaspeed International. The two are not related. U.S. intelligence officials reportedly suspect Alice Huang of being a Chinese spy. NVIDIA’s board launched an independent investigation the same day.
NYT reported on the 9th on how the Commerce Department’s investigation into Megaspeed was halted. The department had been investigating allegations since late 2024 that Megaspeed diverted NVIDIA AI chips to China. In August last year, Tim Teter, NVIDIA’s chief legal officer (CLO), emailed investigators at the Commerce Department’s Bureau of Industry and Security (BIS), requesting information about the investigation. Teter wrote in the email that Jeff Kessler, the deputy secretary responsible for BIS, had authorized the request. A Commerce Department official told NYT that Kessler had never instructed anyone to share information.
The Justice Department later asked the Commerce Department to halt its investigation, and the department complied. The case was transferred to the Justice Department, which is now conducting a criminal investigation into Megaspeed. No public evidence has emerged that Huang directed Teter to make contact.
With allegations that Chinese intelligence agencies approached Huang followed by allegations of improper influence over NVIDIA’s semiconductor exports to China, the U.S. Congress is also turning its sights on Huang and NVIDIA. Republicans Brian Mast, chair of the House Foreign Affairs Committee; John Moolenaar, chair of the House Select Committee on China; and Rick Crawford, chair of the House Intelligence Committee, sent Huang a letter on the 5th. They asked him to attend a closed-door briefing on the 18th and explain his contacts with Alice Huang and NVIDIA’s security systems. A response on whether to accept was due by the 11th.
On the 9th, Democratic Senator Elizabeth Warren and Republican Senator Jim Banks issued a joint statement. The two said that Huang’s acknowledgment that he had a relationship with someone suspected of spying for Chinese intelligence made security concerns more urgent. They also called for the AI Overwatch Act and other measures to be included in the National Defense Authorization Act. Democratic House Minority Leader Hakeem Jeffries also called for a full briefing on the NVIDIA matter and urged tighter export controls.
Three bills are at issue: the AI Overwatch Act, which would expand congressional oversight of advanced AI chip exports; the Chip Security Act, which would track chip shipments; and the MATCH Act, which would tighten restrictions on allied countries’ exports of semiconductor equipment to China. All three bills are already included in the Senate’s package for the fiscal 2027 National Defense Authorization Act. Coordination with the House remains. According to foreign media reports, a former congressional aide said NVIDIA is considered the biggest opponent of the Chip Security Act and the AI Overwatch Act.
China remains a significant market for NVIDIA. Revenue from customers headquartered in China, including Hong Kong, was $7.9 billion in the quarter ended July 26. That was about 8% of total revenue. However, NVIDIA does not include data center compute revenue from China in its forward outlook. In the same quarter, shipments of Hopper chips for data centers bound for China were also less than 1% of data center revenue. The impact of tighter export controls on NVIDIA’s overall China revenue is unclear.
Huang has long argued for easing restrictions, saying export limits instead encourage Chinese companies to develop their own technology. Last year, the Trump administration allowed NVIDIA’s H200 to be exported to China. President Donald Trump made remarks defending Huang even after his acknowledgment. However, some observers say the administration’s position could change as allegations of Chinese intelligence agencies’ approach to Huang come into focus.




[email protected] Lee Byung-chul, correspondent Reporter