Jensen cooperated with china well before the affair. I'm pretty sure her being a chinese spy did not change anything in his decisions. His position on China did not change for years. And he is right. As long as we export chips to china it's really hard for them to invest into developing their own chips from scratch. It's just too expensive. If that door closes they will be incentivised to go for it that much harder. As it is right now they are one step behind us but in the future this won't be the case anymore and since we don't have hardware manufactuing experts in US it's just a matter of time we'll get surpassed. Sure we can bet on AI to overcome that but it's way easier for china to get a software stack going then for us to get hardware manufacturing back.