US Congress Calls for Limiting NVIDIA Chip Exports to China Amid Spy Scandal

• US senators demanded stricter export controls on advanced AI chips from NVIDIA.
• The call was prompted by reports of CEO Jensen Huang's alleged romance with a suspected Chinese intelligence operative.
• A class-action lawsuit has been filed against NVIDIA, and its market capitalization has shrunk by approximately $190 billion.
• Previously, the Trump administration eased export restrictions.

American senators Elizabeth Warren and Jim Banks urged Congress to tighten restrictions on the export of advanced NVIDIA chips to China. The initiative arose following reports of a potential espionage operation against CEO Jensen Huang.

In a joint statement dated November 9, 2026, lawmakers expressed concern that American technologies could fall into the hands of Chinese military structures.

*<In March, representatives from both parties called on the Department of Commerce to suspend or review NVIDIA's export licenses for China and conduct a thorough national security risk assessment>, the senators noted.

According to them, since then, the company has allegedly received permits to supply hundreds of thousands of advanced AI chips, including to organizations linked to the Chinese armed forces.

*, the statement said.

Warren and Banks demanded that the AI Overwatch Act be included in the US defense budget for the fiscal year 2027. The initiative aims to expand Congress's authority over export controls on advanced semiconductors.

Additionally, lawmakers are considering the Chip Security Act, which would require manufacturers to track chip supplies to combat smuggling, and the MATCH Act, aimed at strengthening restrictions on the export of semiconductor manufacturing equipment through allied countries.

*<It is time for Congress to take decisive action to cut off China's access to advanced chips>, the senators emphasized.

Huang's Romance, Investigation, and Shareholder Lawsuit

The political discussion unfolded against the backdrop of a scandal surrounding NVIDIA's CEO's personal relationships. The company's CEO admitted to marital infidelity following publications about his alleged romance with Alice Huang, the former head of Singapore's Megaspeed International.

According to The New York Times, American intelligence suspects the woman of collaborating with Chinese intelligence. However, her involvement in espionage has not been publicly proven.

Megaspeed, a client of NVIDIA, has also come under investigation by US authorities due to suspicions of potentially circumventing export restrictions on supplying advanced chips to China.

NVIDIA's board of directors initiated an independent review of the circumstances surrounding the alleged espionage operation. The company emphasized that it currently has no reason to believe that US state secrets or confidential corporate information have been compromised.

Huang himself promised to cooperate with the investigation and continue his role as CEO.

On November 9, shareholder Mark Kistenmacher filed a class-action lawsuit against NVIDIA and its CEO in federal court in California.

The plaintiff claims that the company misled investors regarding Huang's relationships with representatives of Megaspeed and the associated risks to the business. Shareholders are seeking compensation for damages, the amount of which has not yet been determined.

Amid the scandal, NVIDIA's shares fell by approximately 4.3% on November 9, and the company's market capitalization shrank by about $190 billion. Daily chart of NVIDIA stock quotes. Source: TradingView.

An additional factor of uncertainty has been the changing political landscape in the US following the midterm elections. Earlier, Elon Musk lost nearly $30 billion in estimated asset value amid the victory of Democrats, who advocate for stricter controls on the construction of data centers.

The broader AI sector is also under pressure. On November 5, the Nasdaq index fell by 5.5%, with NVIDIA shares losing 9.3% and AMD dropping 17.3%.

Investors were concerned about a slowdown in infrastructure projects due to political resistance, high financing costs, and rising electricity expenses. Meanwhile, on November 9, American stock indices rebounded despite NVIDIA's continued decline.

Prohibit but not Approve

The standoff over the supply of advanced American processors to China has been ongoing for several years. Washington has consistently restricted Chinese companies' access to technologies that could be used for the development of artificial intelligence and military systems.

In April 2025, the Donald Trump administration imposed additional licensing requirements for the export of NVIDIA H20 processors—specifically designed for the Chinese market in accordance with existing American restrictions.

Notably, shortly before the ban was imposed, Jensen Huang met with Trump during a dinner at Mar-a-Lago. According to media reports, after the negotiations, the White House initially backed away from plans to tighten controls, particularly in light of NVIDIA's promises to invest in the development of American AI infrastructure. However, the restrictions were eventually implemented.

The situation changed in the summer. In July 2025, Huang met again with the U.S. president, after which the company announced its intention to resume H20 shipments to China. NVIDIA reported that it received assurances from the U.S. government regarding the issuance of necessary export licenses.

On August 8, 2025, the U.S. Department of Commerce began issuing permits for the export of these processors.

Later, Trump stated that the shipments would be accompanied by a transfer of 15% of the revenue from H20 sales to China to the U.S. government. According to the president, he initially demanded 20%, but Huang managed to negotiate a lower rate.

In December 2025, U.S. authorities also allowed the export of more powerful H200 processors to approved Chinese clients. For such shipments, a 25% revenue transfer to the government was stipulated.

Now, amid reports of a possible intelligence operation, Congress is once again discussing tightening export regulations.

At the same time, NVIDIA opposes certain legislative initiatives that could restrict international sales of its products. The company claims it complies with U.S. export laws, and additional restrictions could negatively impact the competitiveness of the U.S. technology sector.

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