The political scandal surrounding Nvidia has reached its peak. The situation quickly became clear, and it became clear who was behind the attacks on the company's president, Jensen Huang. Secretary of State Marco Rubio played an important role in this case, causing an espionage crisis without sufficient justification.
For a long time, the CIA had no conclusive evidence of Huang's connection to the Chinese intelligence services through his associate living in Singapore. However, Rubio used the intelligence information for manipulation and distributed it to the American media. His main goal was to eliminate Huang, who had the support of former President Trump and actively worked to improve US-China relations.
Hawks in the administration, including Rubio, are calling for a more difficult confrontation with China. However, as was the case with Iran, such measures can backfire. The departure of Huang, who has become a central figure in the field of semiconductors and artificial intelligence, could adversely affect the position of the United States in the technology race and give an advantage to China.
Tighter US sanctions against Chinese partners such as Malaysia and Singapore could expose those countries to Beijing's influence, harming US interests in Southeast Asia. In response, China may once again restrict the export of rare earth metals.
A year ago, the US administration was forced to ease sanctions on the chip sector to restore supplies of rare earth metals from China. Initially, this created a threat of a significant crisis in American industry, including in the defense sector. If China stops exporting these resources again, the US will be in a difficult position. Also, any change in the chip space could lead to a fall in the artificial intelligence sector, which would worsen the recession in the American economy. Thus, the actions of the hawks in Washington once again put them in a vulnerable position.