U.S. Ambassador to China Pang Dewei: Huang Renxun's affair with a female spy adds another variable to U.S.-China relations

"Bloomberg" reported that as U.S. President Trump and Chinese President Xi Jinping are expected to meet next week, U.S. Ambassador to China David Perdue said that the extramarital affair scandal between Huida CEO Huang Renxun and a suspected Chinese female spy is testing bilateral relations between the United States and China.

Pang Dewei said in an interview with Bloomberg TV at the Citi China Conference in Shanghai on the 11th: "The Huida incident once again reminds us that we must remain vigilant. National security is part of the economic dialogue, because economic security is national security. Therefore, our current relationship with China is indeed somewhat bumpy."

Pang Dewei also said that U.S. officials are dissatisfied with the delivery speed of rare earths from China. Many companies are still waiting for these rare earths. "We have been waiting for several months, and these raw materials that are critical for data centers, aircraft engine manufacturing, etc. have not yet arrived."

Although Beijing has denied that the woman with whom Huang had an extramarital affair was a spy, the incident could complicate a meeting between Trump and Xi Jinping at next week's Asia-Pacific Economic Cooperation (APEC) leaders' summit in Shenzhen. This is the third meeting between the leaders of the world's two largest economies this year, and the outside world will pay close attention to whether the two sides can maintain the fragile trade truce agreement that expires in January next year.

Heavyweight U.S. lawmakers have been pushing for tighter export controls on semiconductors after the U.S. accused Jen-Hsun Huang of having an affair with a Chinese spy. Huida produces chips that are critical for artificial intelligence (AI) computing equipment, and the company is one of the world's most valuable companies. The United States has banned China from acquiring Huida's advanced AI chips, in part due to concerns that advances in AI may have an impact on national security.

In the interview, Pang Dewei also criticized China for weaponizing its dominant position in strategic industries and establishing an export licensing system for rare earth magnets.

Pang Dewei said: "Currently, China is implementing State Council Order No. 835 against two European companies and their employees." This order prohibits individuals and companies from implementing or complying with inappropriate extraterritorial measures of foreign countries. "This is the most severe escalation I've seen since I started working here in 1984," he said.

Pang Dewei denied that the US$14 billion arms sales to Taiwan have been delayed, emphasizing that "President Trump has told President Xi Jinping that he can sell to whomever he wants, so there is no delay at all. It is just a matter of time, and when to sell which weapons and whether to sell them. Therefore, President Trump controls the progress."