Trump heads to China for APEC summit as Nvidia leadership change raises questions

United States President Donald Trump is set to depart for Shenzhen next week to attend the Asia-Pacific Economic Cooperation summit. The primary objective of the visit is a scheduled bilateral meeting with Chinese President Xi Jinping. This diplomatic trip occurs during a period of heightened attention on the technology sector, specifically regarding Nvidia and its relationship with Beijing.

The backdrop for the summit is complicated by the ongoing situation involving Jensen Huang, Nvidia's outgoing chief executive. Huang, who is considered one of Trump's closest allies in Silicon Valley, faces increasing scrutiny over his personal connection to Alice Huang. US officials suspect the former Megaspeed executive of working for Chinese intelligence, although Beijing has denied these allegations. On Thursday, Nvidia confirmed that Huang would step down from his role as CEO.

Huang's presence in the US delegation during the May visit to Beijing had been intended to help unlock stalled sales of Nvidia's H200 AI chips. Despite Trump approving the sale of these chips in December 2025, with a stipulation that 25 percent of proceeds go to the US government, actual shipments remained low. This was largely due to slow import approvals from the Chinese government, which aimed to support its domestic chipmakers. With Huang stepping down, his role in the upcoming Shenzhen delegation is now uncertain.

Analysts suggest that the Nvidia scandal may not immediately alter the trajectory of US-China relations. Steve Okun, a Singapore-based geopolitical analyst, described the current state of relations as a stalemate. He noted that if the US continues to impose restrictions on AI product sales, the resulting diversion and diffusion of these products would be a more significant source of tension than Huang's personal affairs. Gabriel Wildau of Teneo also indicated that Trump shows no sign of intending to disrupt the current rapprochement, though he acknowledged potential pressure from Congress and hawkish voices within the administration.

Carsten Holz, an expert on the Chinese economy at the Hong Kong University of Science and Technology, stated that Trump's position in the upcoming talks is difficult to predict. He argued that the president does not appear to have a coherent China policy and that Huang's personal matters are of little relevance to the broader bilateral relationship. However, political pressure is building. Control of both houses of Congress will pass to the Democrats in January, and a tough line on AI and China is seen as a rare area of bipartisan consensus.

This pressure was highlighted on Wednesday when Democratic Senators Elizabeth Warren and Chris Coons requested that Commerce Secretary Howard Lutnick, Secretary of State Marco Rubio, and White House chief of staff Stephen Miller preserve all records regarding Nvidia's chip exports to China. The senators expressed concerns about the federal government's ability to enforce export controls and protect national security. Additionally, reports indicate that Lutnick has delayed a planned crackdown on firms suspected of funneling Nvidia chips to China.

Beijing has responded by rejecting the spy claims, accusing Washington of using them as a pretext for a technological blockade. Ministry of Foreign Affairs spokesperson Mao Ning said on Thursday that the US should stop fabricating such narratives. However, she also stated that China remains willing to work with the US to implement the consensus reached by the two leaders. Chinese chipmakers may benefit from this situation, as shares in Moore Threads, MetaX, and Cambricon jumped nearly 10 percent on Thursday.

Looking beyond the Shenzhen summit, experts expect pressure to build in the coming year. Okun suggested that Congress could pass the Remote Access Security Act to prevent Chinese firms from accessing advanced chips through the cloud. The Department of Commerce might also impose export controls on Megaspeed or require licenses for advanced chips sent to countries like Singapore and Malaysia. While these moves could strain the US-China relationship in 2027, analysts agree that such changes are not expected during next week's summit.

The outcome of the APEC summit will be watched closely as a signal of where the administration stands on technology trade. Trump has stood by Huang throughout the recent scandal, describing him as an honourable guy. Whether this personal loyalty will translate into a tougher stance against Beijing or a continued effort to maintain the chip trade thaw remains to be seen.

For now, the focus turns to the formal meetings in Shenzhen. The interaction between the two leaders will likely set the tone for the next phase of US-China economic and technological engagement. Both sides have indicated a desire to maintain dialogue, even as underlying tensions over semiconductor exports and national security persist.