China accuses US of 'fabricating' Nvidia spy claims to push tech 'blockade'

BREAKING: China accuses the US of 'fabricating spy narratives' to justify a tech 'blockade', pushing back on reports that the woman Nvidia CEO Jensen Huang had an affair with was a Chinese intelligence asset. $NVDA

Beijing says the Nvidia honey trap story is fabricated, invented to justify a tech blockade.

That's the Chinese foreign ministry this morning, with spokeswoman Mao Ning telling reporters the US should stop manufacturing spy narratives as a pretext for cutting China off from advanced technology. Her words, China's progress comes from independent innovation, not stolen secrets.

Quick recap on what she's pushing back against. Jensen Huang has admitted to an extramarital affair, reportedly with Alice Huang, a former executive at Singapore based Megaspeed, and US officials believe she worked for Chinese intelligence. Nvidia's board is already weighing his future, and the stock has been taking the hits.

Now the timing. Trump and Xi Jinping meet next week at APEC in Shenzhen. Trump is the same president who cleared Nvidia's H200 chips for export to China over loud objections in Washington. So a spy scandal wrapped around the world's most important chipmaker just landed on the summit table, days before the two men shake hands.

This is Liu Yang, reporting for HIT.