As the United States and China prepare for their third summit of the year during the Asia-Pacific Economic Cooperation (APEC) meeting on November 18-19, the scandal surrounding NVIDIA founder Jensen Huang has emerged as a new variable in the ongoing technology security tensions between the two nations.
Both leaders are expected to focus on stabilizing relations, suggesting that the scandal may not be directly addressed during the summit. However, increasing pressure from the U.S. regarding technology export controls to China could introduce uncertainties into future relations.
Focus on stabilizing relations; Jensen Huang scandal likely not discussed
Reports from international media, including Reuters, indicate that President Donald Trump is unlikely to raise the issue of Chinese espionage allegations involving Jensen Huang and his alleged mistress, Alice Huang, during his meeting with Chinese President Xi Jinping.
Alice Huang, a former executive at Singapore-based Megaspeed, which was a customer of NVIDIA, is said to have had an affair with Jensen Huang. Megaspeed has been accused of circumventing U.S. export controls to ship NVIDIA semiconductors to China through Southeast Asia.
The U.S. authorities are investigating whether Megaspeed violated semiconductor export controls, and the Department of Justice has yet to reach a conclusion regarding Alice Huang's alleged involvement in espionage. The Chinese government has denied the espionage allegations against Alice Huang.
Analysts suggest that both leaders have little incentive to discuss these allegations directly during the summit.
Following a disappointing performance for the Republican Party in the recent midterm elections, President Trump is under pressure to achieve diplomatic successes during his APEC attendance and meeting with Xi. Meanwhile, Xi, who is expected to seek a fourth term at the upcoming 21st National Congress of the Communist Party of China in 2027, also needs to manage relations with the U.S. carefully.
Trade agreements on tariffs and agricultural purchases to be prioritized; follow-up at G20 next month
Consequently, the two leaders are expected to focus on achieving results in trade and economic areas where there is relatively more room for agreement, while seeking to stabilize relations and foster cooperation.
According to a statement from China's Ministry of Commerce, the two sides held a virtual trade negotiation on November 13, discussing mutual tariff reductions, agricultural trade, and other issues. While no new agreements were announced, both sides agreed to continue communication to address economic and trade concerns. The ministry described the discussions as "frank, in-depth, and constructive."
Sun Chenghao, a researcher at Tsinghua University's Center for Strategic and Security Studies, noted on November 15 that President Trump's political motivation to demonstrate economic achievements has increased following the midterm elections, suggesting that he may emphasize concrete trade outcomes, such as expanding Chinese agricultural purchases or allowing greater market access.
The U.S. and China are also planning another summit during the G20 meeting in Miami next month. Therefore, it is anticipated that the APEC summit will focus on coordinating follow-up tasks and implementation schedules, with both sides reviewing progress at the G20 meeting. Analysts believe that the emphasis will be on stabilizing relations rather than achieving groundbreaking agreements in the short term.
Long-term AI and semiconductor cooperation uncertain due to Jensen Huang scandal
However, the Jensen Huang scandal is likely to intensify U.S. pressures for technology regulations against China, suggesting that conflicts surrounding technology security will persist. There are concerns that reaching agreements and implementing cooperation in critical strategic areas such as advanced semiconductors, AI, and rare earths will be challenging.
Discussions on AI between the two nations may face difficulties from the outset during this summit. On November 10, U.S. Treasury Secretary Scott Vessenet stated that he aims to advance discussions on AI during the summit, focusing on safety assessments, risk management, and establishing communication channels for significant AI incidents.
However, analysts from the United Daily News suggest that the Jensen Huang scandal may deter U.S. companies from participating in AI discussions, potentially creating political obstacles for cooperation in semiconductors and cloud computing resources. They warn that AI cooperation may be limited to risk management and maintaining communication channels rather than fostering substantial industrial and technological collaboration.
China may leverage rare earths in response to US export controls
There are also speculations that the Jensen Huang scandal could provide the U.S. with a new justification for tightening technology controls against China.
Liming Zhang, an associate professor at Nanyang Technological University in Singapore, believes that the scandal may give the U.S. grounds to impose additional restrictions on the export of advanced semiconductors to China, suggesting that both nations may face difficulties in addressing core technology, supply chain, and rare earth issues.
Sun Chenghao also pointed out that some U.S. lawmakers are linking unresolved allegations to semiconductor export approvals for China, thereby reinforcing the security narrative around technology cooperation.
In fact, legislative efforts are underway in the U.S. Congress to block China's circumvention of semiconductor access. Notable proposals include the Remote Access Security Act, which regulates remote access to U.S. advanced semiconductors through third-country data centers, the AI Oversight Act, which enhances congressional oversight of export licenses for advanced AI chips, and the Chip Security Act, which mandates location verification for exported AI chips. There are also discussions about including these proposals in future defense authorization bills, which could further accelerate the push for stricter technology regulations against China.
In response, China may consider using rare earth export controls as a bargaining chip in negotiations with the U.S. As demands for stricter technology regulations against China grow in Congress and the Trump administration's political maneuverability diminishes, analysts suggest that China may adopt a wait-and-see approach rather than making concessions in technology and resource negotiations with the U.S.
* This article has been translated by AI.
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