CHINA FOREIGN MINISTRY SAYS ON NVIDIA PROBE: US SHOULD STOP FABRICATING CHINA SPY NARRATIVE

China's Foreign Ministry responded to reports of a probe involving Nvidia by calling on the United States to stop fabricating a narrative about Chinese espionage. The statement frames the matter as a political dispute rather than a regulatory or legal finding, and the headline itself does not confirm the scope, legal basis, or potential penalties of any investigation. The transmission mechanism runs through geopolitical risk premia and regulatory uncertainty: escalating US-China tensions over semiconductors can affect Nvidia's access to the Chinese market, which has historically been a meaningful revenue source for its data center and gaming products, and can weigh on sentiment toward China-exposed equities more broadly. Nvidia (NVDA) is most directly exposed given its dependence on export-controlled advanced chips and its sensitivity to any restrictions on sales into China, while Chinese equities and the renminbi may react to the diplomatic tone and any signaled retaliation. Traders should watch for any formal follow-up from US authorities or Chinese regulators, including confirmation of the probe's scope, and any changes to export control rules that would directly affect Nvidia's

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