US lawmakers move to tighten chip rules for China in wake of Nvidia spy allegations

Nvidia CEO Jensen Huang with US President Donald Trump at the US Institute of Peace on Nov. 8, 2026. (Reuters/Yonhap)

Efforts to tighten controls on exports of advanced semiconductors to China are gaining momentum in the US in the wake of a scandal involving Nvidia CEO Jensen Huang and a woman suspected of being a spy for China.

With Democratic and Republican Party lawmakers reaching across the aisle to call for swift passage of related legislation, the situation is turning into a potential political liability both for Huang — who has advocated the loosening of related regulations — and for President Donald Trump, who has actively supported him.

Congress is also expected to launch an investigation into the scandal and the possibility of leaked intelligence.

On Monday, various members of Congress urged the passage of legislation to control exports of semiconductors to China — regulations that Nvidia has strongly opposed in the past.

In a joint statement, Sen. Elizabeth Warren of the Democratic Party and Sen. Jim Banks of the Republican Party called for the swift passage of the AI Overwatch Act.

In it, they said, “Nvidia CEO Jensen Huang's confirmation of a relationship with a suspected spy for China's intelligence service makes these national security concerns even more urgent.”

Democratic Party Rep. Bill Foster also called for the passage of the Chip Security Act, which he co-sponsored with a Republican colleague.

Three Democratic members of Congress sent a letter to Secretary of Commerce Howard Lutnick that day calling for the immediate suspension of exports of advanced AI semiconductors to China. One of them, Rep. Gregory Meeks, is a ranking member of the House Committee on Foreign Affairs.

The legislation currently under discussion by Congress includes the AI Oversight Act, which increases congressional controls on exports of advanced AI semiconductors; the Chip Security Act, which would legislate location tracking for exported semiconductors; and the Multilateral Alignment of Technology Controls on Hardware (MATCH) Act, which would pressure allies such as the Netherlands and Japan to take part in restricting exports of semiconductor manufacturing equipment to China.

The MATCH Act in particular could have an impact on the Korean semiconductor industry if passed. The bills in question are part of a National Defense Authorization Act legislation package for the 2027 accounting year that has been passed by the House Committee on Foreign Relations and is currently under discussion in the Senate.

Meeting with the Hankyoreh and other news outlets in Washington on Tuesday, a former senior US official predicted bipartisan cooperation on the issue, suggesting that there could be future measures to restrict certain forms of economic and technological exchange between the US and China.

The same figure anticipated that the situation would be the first among numerous extensive investigations pursued by the Senate and House in connection with US-China technology relations. Another former official similarly predicted that discussions on technology regulations concerning China would gain momentum.

Meanwhile, Trump, who has defended Huang in the past, is finding himself with increasingly less room to maneuver.

Speaking at the White House briefing room on Tuesday, Trump said he had spoken with Huang by telephone.

“[Huang] said, ‘I had no idea that she was a spy,’ and I really believe him,” he said.

When asked if he was aware of the allegations at the time of his China visit in May, he said, “No, I didn’t hear about it then.”

He added that he would “have to check” the related intelligence report.

“They could have been mentioned. Certainly, it didn’t make much of an impact on me,” he added.

Trump also said he was aware that the FBI was also looking into the matter.

A former senior US official predicted that questions of how Trump responded to related warnings and what impact his relationship with Huang had on semiconductor policies concerning China would likely become matters to explore in future congressional investigations.

The same figure predicted the investigation could take anywhere from weeks to months.