China has warned the United States not to use a scandal involving Nvidia as a pretext for tightening technology restrictions, with Beijing accusing Washington of fabricating 'espionage narratives'. The Financial Times reported the warning as the chipmaker's board weighs the future of its chief executive, Jensen Huang.

The dispute follows allegations involving Huang and a suspected Chinese spy. U.S. lawmakers have responded by calling for tighter restrictions on China's access to advanced AI chips, according to Forbes, which reported the congressional push alongside Beijing's objections.S2

The episode links a corporate governance question at Nvidia to a wider contest over semiconductor access between Washington and Beijing. Chinese officials are pressing Washington not to let the allegations drive new curbs on technology exports, while U.S. legislators argue that controls on advanced AI chips should be strengthened.S1S2