If the Huang has a secret relationship with a report then he's in a lot of trouble and the company is in some trouble. If the companies response to that relationship is to do nothing - now the company and Huang are both in a lot of trouble. Heck the problem with the first affair isn't the is she or is she not a spy - if Huang could convincingly argue that he didn't know then he's a victim - the problem is having a relationship with a customer, that's actually not much better then with a report.