Donald Trump, the President of the United States, is facing a conflict of interest controversy after reportedly purchasing a significant amount of Nvidia stock just before easing export restrictions on advanced artificial intelligence (AI) semiconductors.
According to reports from The Guardian and Yonhap News on November 14, Trump bought between $1 million and $5 million worth of Nvidia shares just days before the Biden administration announced plans to repeal AI semiconductor export controls established by the previous administration.
An analysis by the anti-corruption group DeClaptoCracy, cited by The Guardian, indicated that Trump also acquired shares in other tech companies, including Apple, Meta, and Microsoft, during this period.
In January of last year, the Biden administration implemented an 'AI Diffusion Framework' to limit the overseas export of advanced AI semiconductors, categorizing countries into allies, general nations, and those of concern, such as China and Russia, to impose differential export controls.
However, the Trump administration announced plans to repeal these regulations in May, arguing that they hindered innovation among U.S. companies and imposed excessive regulatory burdens. The Guardian noted that had the regulations remained in place, Nvidia's sales to China, a key market, would have been restricted. Following the announcement of the repeal, Nvidia's stock price rose.
After Trump announced in December that he would allow exports of Nvidia's AI semiconductor H200 to China, he reportedly made at least three additional stock purchases.
This controversy surrounding Trump's potential conflict of interest is expected to intensify following revelations about Jensen Huang, the former CEO of Nvidia, who has been linked to allegations involving a Chinese spy.
Huang is suspected of facilitating the large-scale circumvention of Nvidia's advanced semiconductors to China through his relationship with Ellice Huang, who is suspected of being a Chinese spy, raising concerns about the potential leakage of Nvidia's trade secrets or U.S. national security information.
Meanwhile, claims have emerged suggesting that Huang's resignation amid the spy allegations may have been influenced by his ethnic background. Hu Xijin, the former editor-in-chief of the Chinese state-run Global Times, stated on social media on November 13 that Huang's case serves as a warning to Chinese elites in the U.S., arguing that his Taiwanese-American heritage may have worked against him. He compared Huang's situation to that of Elon Musk, the CEO of Tesla, who continues his activities despite personal controversies, suggesting that American society is wary of the semiconductor industry being dominated by individuals of Chinese descent.
* This article has been translated by AI.
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