Trump’s China Espionage Scandal Deepens as He Defends Nvidia’s Former CEO Amid Cabinet Allegations

November 14, 2026

Trump's kennedy Center takeover
President Donald Trump and Commerce Secretary Howard Lutnick are ensnared in the controversy surrounding former Nvidia CEO Jensen Huang. (Photo: Jim Watson/AFP via Getty Images)

Donald Trump’s longtime association with Jensen Huang, the former Nvidia chief executive, has taken an unexpected turn as Huang becomes entwined in a widening scandal.

Initially, Trump stood by Huang and urged him to contest the claims and fight to keep his role before Huang resigned after admitting an affair, one of which involved a woman suspected of spying for China.

Trump has since suggested Tim Cook of Apple as a possible successor.

The controversy has forced Trump to recalibrate his plans and now sees two members of his Cabinet on opposite sides of the issue.

Stephen A. Smith, interviewing the president this week for Smith’s “Straight Shooter” podcast, pressed Trump with questions that demanded more than his usual praise and reassurances.

Trump was discussing Jensen Huang, who had recently resigned as Nvidia’s CEO. Smith then asked whether the billionaire should have stepped down amid allegations involving a woman suspected of spying for China.

He said he didn’t know and continued defending Huang as a “fine man” who is “going through hell.”

Huang was set to join Trump on his four-day Asia trip, announced in May. But his resignation as Nvidia CEO on Thursday has changed those plans.

Trump is scheduled to meet Chinese President Xi Jinping next week. The gathering will take place during the Asia-Pacific Economic Cooperation forum in Shenzhen, China. Trump will be accompanied by Elon Musk, the head of Tesla and the chairman of X.

However, CNBC reports that he is not expected to address the allegations involving Alice Huang with Xi.

One senior administration official said, “it’s probably not something that we’re going to read the Chinese in on at this moment.” Another official added, “I don’t expect the president to raise it, the Alice Huang issue.”

Theories intensified over why Trump might skip addressing the scandal, with some suggesting he adheres to a “don’t ask, don’t tell” approach.

“He dares not, China could embarrass him,” remarked a second individual.

A number of observers suggested Trump defended Huang because he believes a powerful man’s infidelity is tolerable.

Another person speculated: “He was briefed on the spying intelligence before the trip, and Lutnick stalled the diversion crackdown. The easiest items to leave off the agenda.”

May also is when the twice-divorced president learned aboard Air Force One that U.S. intelligence linked Huang to a woman suspected of spying for China, per the New York Times.

Secretary of State Marco Rubio issued the warning shortly before Huang joined the president.

The Nvidia controversy has also drawn other Cabinet members into the spotlight.

Commerce Secretary Howard Lutnick is slated to testify before the Senate Banking Committee on December 10 amid scrutiny over AI chip exports.

Republicans seek answers about delays in restricting Megaspeed International, a company once led by Alice Huang, the woman suspected of spying for China and having an affair with Nvidia’s Huang.

U.S. officials suspect Megaspeed diverted Nvidia chips to China in violation of export restrictions.
GOP Sen. Jim Banks, a member of the Senate Banking Committee, told Fox News Thursday that Lutnick “used loopholes” to allow chip sales despite Trump’s orders to block them.

Danielle Brooks

I am a staff writer at New York Beacon, where I focus on culture, entrepreneurship, and the emerging voices redefining Black America. My work highlights innovators, artists, and founders whose stories often unfold beyond mainstream headlines but shape communities in meaningful ways. Through precise reporting and thoughtful storytelling, I aim to document progress, challenge narratives, and contribute to a stronger Black press tradition.