China doesn't even want Nvidia chips. They're holding up hundreds of thousands of smuggled cards at Hong Kong customs. Many Chinese companies want to take the easy shortcut of using Nvidia, but the Chinese govt wants Chinese companies to go through the pain of helping the domestic chip industry develop.

Plus the fact that there's absolutely no evidence that the lady is a spy. All media report anonymous sources but treat the allegations as fact. Singapore said their investigation of the lady is not due to spying, but no western media picked up that story. The lady traveled to Taiwan with her Hong Kong passport, and the Taiwanese govt also said they have no evidence she's a spy. The Chinese spy agency just started investigating her due to all the commotion (likely for smuggling chips, which China also doesn't want, see above), and also has no idea who she is. Despite all this, the public still treats the spy allegations as a fact.

Jenssen Huang is a victim. Those who wanted to get rid of him and set this up, have succeeded. But everyone is under the mistaken belief that this hurts China somehow. China doesn't give a damn. In the mean time, all Chinese Americans lose. Jenssen is not the first such victim, and won't be the last.