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Chinese commentators said Washington could turn more hawkish and tighten chip export controls as Huang’s personal ties to Alice Huang, a former executive at Singapore-based Megaspeed, raise national security concerns.
Days after Democrats won both chambers of Congress at the November 3 midterm elections, President Donald Trump named hardliner Stephen Miller to replace Susie Wiles as White House chief of staff.
Miller, best known as the architect of Trump’s immigration crackdown, has a long record of targeting China. In 2018, during Trump’s first term, he urged the president to stop issuing student visas to Chinese nationals to counter espionage. The idea was shelved after other officials warned of its economic cost.
As the Huang and Huang scandal evolves and the political tide shifts in Washington with the Democrats taking both chambers of Congress, analysts believe the Remote Access Security Act (RASA) could now be fast-tracked.
The bill, passed in the House in January and pending the Senate’s review, would extend US export controls from physical chips to cloud computing, barring Chinese firms from remotely renting servers powered by advanced Nvidia chips in third countries, such as Malaysia and Norway.
Even before the RASA becomes law, the mid-term election result favoring the Democrats, buoyed in part by rising popular backlash against AI data centers and a lack of regulation, had already sent shockwaves through the chip and data center industries.
In a letter dated November 4, the Republican chairs of three House committees asked Jensen Huang to attend a joint closed-door briefing on November 18 about his interactions with Alice Huang and see whether Beijing had influenced Nvidia’s corporate decisions or even US chip export policy.
On the same day, two things happened.
- Nvidia tightened its rules for cloud customers. It told them to sell at least 51% of their computing capacity to companies outside China, a requirement that applies only to new contracts. It also now requires clients in Southeast Asia to join its “fleet intelligence” system, which tracks the location of their AI accelerators, before they can become official Nvidia Cloud Partners (NCPs).
- Oracle scrapped a five-year, US$7 billion deal to lease Tencent up to 100,000 advanced AI chips in Southeast Asian data centers after US officials objected, the Financial Times reported. Chinese authorities had also questioned the arrangement and urged Tencent to use domestic chips instead. Oracle still runs several data centers in Malaysia for ByteDance, the newspaper said.
“The relevant report is unsubstantiated. It is nothing but smears against China,” Chinese Foreign Ministry spokesperson Guo Jiakun said on October 30 when asked about the New York Times report.
On November 8, Huang admitted he had been unfaithful to his wife, while Nvidia’s board launched an independent investigation.
Some Chinese pundits say the scandal will probably lead to tighter US chip export controls, as Democrats and Republicans compete to look tougher on China.
“Nvidia is caught between Washington’s demand for strict curbs on chip exports to China and the huge profits on offer in the Chinese market,” writes a Shandong-based columnist using the pen name “Fen Mu.” “When Jensen Huang says losing China would be a huge loss for Nvidia, hawkish US politicians hear it as siding with the Communists.”
“The report about Alice Huang fueled the skeptics,” he says. “As US-China decoupling in technology has moved from talk to real action with chips, AI and quantum computing becoming the main battlefields, companies like Nvidia will only face more pressure from the US government and Congress.”
“Jensen Huang may not be the last tech executive to be called in by lawmakers. Politics is now intervening in business decisions more deeply than ever. Entrepreneurs used to answer only to their shareholders, but now they must answer to politicians as well,” he says.
He adds that Huang’s closed-door briefing may look like a personal matter but reflects a wider change of the times, and that it is absurd for a technology chief to have to explain to lawmakers which executive he is close to.
“Huang’s position has become extremely unusual. He controls the computing power that the global AI industry depends on, keeps close ties with the US government and takes part directly in policy debates on US-China tech competition,” writes Xiaobai, a China-based financial columnist.
“When his personal relationships are so closely intertwined with Nvidia’s business interests and America’s technology strategy, a private scandal can trigger wider political and commercial fallout. What Congress really cares about is Huang’s growing influence on US policy and the split between the Trump administration and Congress over chip exports,” he says.
He says the Trump administration sees Nvidia as key to maintaining America’s edge in AI, while Congress argues that as Nvidia’s computing power grows, its overseas customers and internal security need closer scrutiny. He adds that this tension reflects a long-term dilemma in US tech policy toward China.
Who is Alice Huang?
Although US authorities suspect Alice Huang of spying for Beijing on Nvidia and US chip policy, Chinese news websites have been free to dig into her past. Some say she has claimed to be a former TV reporter, but no records back this up. Others note that regulators fined an investment firm where she was an executive in 2018.
A timeline of her career and of US chip export controls helps explain the whole picture:
- In 2010, former analyst Kang Wei founded Shanghai Hexi Investment Management, where Alice Huang later became an executive director.
- In 2018, China’s securities regulator fined Hexi 17.7 million yuan (US$2.5 million) over trading in a shell company linked to PHICOMM, whose founder was later jailed for life for illegal fundraising.
- In 2019, Huang sold an online game business to Shenzhen 7Road Technology for 1.2 billion yuan.
- In October 2022, Washington banned exports of Nvidia’s A100 and H100 chips to China, a month before ChatGPT’s launch.
- In March 2023, an Alice Huang-owned company bought 7Road’s Singapore unit and renamed it Megaspeed. In November, Megaspeed became an Nvidia Cloud Partner, four days after Huang transferred it to Swiftdata, a firm set up by Singaporean Tan Yong Pong.
- In June 2024 and May 2025, Alice Huang and Jensen Huang were photographed together in Taipei. In late 2024, the US began probing Megaspeed. From mid-2025, US intelligence agencies monitoring her communications had found she was in contact with Jensen Huang.
Before the world entered the artificial intelligence era in late 2022, Nvidia was best known only for its gaming graphics cards, while Alice Huang and Hexi invested in video game companies. The New York Times said US intelligence believes China’s Ministry of State Security recruited Alice Huang but the report did not say when or why.
“Recent reports raise significant national security concerns regarding the People’s Republic of China’s access to sensitive US technology and information,” the chairmen of the House Select Committee on China, the House Foreign Affairs Committee and the House Permanent Select Committee on Intelligence wrote on November 4. “It is vital that Congress determines the extent to which US national security has been placed at risk.”
The three chairmen asked Nvidia’s Huang to brief the committees on November 18 and to accept the invitation or propose another date by November 11.
Before the lawmakers’ request, Nvidia’s spokesperson said Megaspeed was just another of Nvidia’s regional cloud customers and that Jensen Huang’s interactions with its officials were not unusual, as he speaks with thousands of customers every year.
Trade data cited by the New York Times show that Megaspeed’s sister companies in Malaysia bought at least US$4.8 billion of Nvidia equipment, including about 136,000 GPUs, between June 2024 and February 2026.
Huang, whose job at Nvidia may now be on the line, will have to explain whether any of these chips ended up in China and who is using them in Southeast Asia’s data centers. He may also face questions over his role in persuading Trump earlier this year to let Nvidia sell its H200 chips to China.
“We would like to clarify that the article contains misleading information and incorrect insinuations, including suggestions that we may have been involved in illegal chip transfers,” Megaspeed said in a statement posted on LinkedIn on Monday, responding to an earlier Bloomberg report.
It said on-site inspections by the US Commerce Department’s Bureau of Industry and Security, Malaysia’s Ministry of Investment, Trade and Industry and Nvidia had found no evidence of any violations.
Read: Nvidia chip curbs turn Singapore into AI hub for China
Follow Jeff Pao on X at @jeffpao3
Source: Iwpost.com
