"What did the president know, and when did he find out?" So ran the classic question about Richard Nixon and Watergate. And it was precisely the obfuscation of what President Nixon knew that ultimately became his downfall 53 years ago.
Donald Trump is not suspected of any crime in connection with the scandal that is now shaking the microchip giant Nvidia. But it's clear he was either lying, or had a very poor memory, when he commented on the scandal on Monday and was asked what he knew.
Trump then claimed that "I didn't hear about it then, but a lot of people have heard about it, and Jensen completely denies it."
Well-substantiated reports in several American media show that the president was informed at least twice, in May of this year and sometime last year, about the suspected spy.
Trump's comment that Huang had no idea that the woman might have been a spy was also completely irrelevant. The very point of spying is that the person being spied on should not suspect anything.
Now the scandal has forced Huang to resign, with unpredictable consequences for the US economy, for the development of AI and for geopolitics.
China denies any cooperation with Alice Huang. That's perfectly normal, but doesn't convince many outside China's borders.
Instead, observers around the world observe with grudging admiration that the Chinese intelligence service has by all accounts succeeded in the coup of the ages. Smuggling a spy into the close proximity of the Nvidia boss may have given the regime in Beijing a peephole right into perhaps the world's most important company, which plays the main role in the ongoing AI race.
Alice Huang may have influenced Jensen Huang to push the issue of dropping export restrictions on China before Trump. And not least, the suspected espionage may have given the Chinese valuable insight into how Trump thinks, since he in turn has admitted Jensen Huang into his inner circle.
Andrew McCabe, a former deputy FBI director, calls China's feat "a grand slam." And in an interview with CNN, he is very critical of Trump.
- It is inconceivable to me that the President of the United States was informed of this. Not just once, but twice. And did nothing.
Why the president remained passive is sure to be scrutinized in Congress, especially after Jan. 3 when the new Democratic majority takes office. But even many Republicans want answers to this.
After all, Trump has wanted to show himself tough on China. He has portrayed the struggle for AI dominance between the major powers as a matter of survival.
Therefore, it has been seen as illogical that he has often dismissed serious accusations against the regime in Beijing with the argument that "everyone does it". And that he seems to do so in this case as well.
He could have stopped it instead. Able to threaten China with countermeasures. Or at least warn his friend Jensen Huang.
Some are now pointing out the inappropriateness of a president in having such a close relationship with CEOs of large corporations. Others highlight that Trump himself has invested millions in Nvidia shares and is thus disadvantaged by scandals surrounding the company coming to light and the price dropping.
Another factor is his strange admiration for dictators and authoritarian leaders. He generally treats them far better than leaders of democratic, allied countries.
We will see if this plays into the Nvidia case next week, when Donald Trump meets his colleague Xi Jinping in China. He has already said that he will not address the spy scandal then.
Read more:
Nvidia CEO Jensen Huang resigns after cheating deals
