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How the Jensen Huang affair changes the outlook for U.S.-China relations

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Core Development: How the Jensen Huang affair changes the outlook for U.S.-China relations
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Market & Financial Impact: The political climate heading into next week's Trump-Xi summit is drastically different from the last meeting in September.
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BEIJING — Prolonged U.S. Congressional scrutiny of former Nvidia CEO Jensen Huang's affair with an alleged Chinese spy raises the stakes for already tense relations between the world's two largest economies.

Nvidia's Huang resigned Thursday, and agreed to testify before Congress sometime before Thanksgiving on Nov. 26. House Foreign Affairs Chair Brian Mast, R-Fla., told reporters there could be "public hearings for other people or other things down road."

"I worry this incident will deteriorate the atmosphere dramatically in Washington against China, and also export control matters, and also the Trump administration in its way of dealing with China," said a Beijing-based foreign policy researcher, who requested anonymity as academics risk discipline or even removal for speaking to the media.

The researcher warned of a possible return to a situation like that in the 1990s, when a "Chinese-American" nuclear physicist was suspected of sharing nuclear secrets with the Chinese government, resulting in a federal prosecution. The court ultimately dismissed all but one of 59 counts.

Now the bilateral relationship, supported by a fragile trade truce, faces another espionage allegation. And this time it's around the tech executive at the heart of the U.S.-China competition over artificial intelligence.

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Official Publisher Attribution: This report is aggregated from CNBC. ZeroLive provides live aggregation, automated sentiment synthesis, and exchange disclosure monitoring for retail market participants.
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