‘Commerce has the pen’: Why one Trump aide blamed another amid Nvidia controversy

Detailed summary

US lawmakers from both parties are demanding answers from Howard Lutnick over the approval of $4 billion in Nvidia chip sales to Megaspeed. | World News

US treasury secretary Scott Bessent on Friday took a swipe at commerce secretary Howard Lutnick over delays in restricting Nvidia chip exports to Megaspeed International, a Singapore-based company whose chief executive is suspected by US intelligence of having links to Chinese espionage.

Speaking to CNBC on Friday, Bessent said the Treasury, State and Defence departments, along with the US Trade Representative, had supported placing Megaspeed on the export control list for several months. However, he said the decision rested with the Commerce Department, which oversees restrictions on sensitive American technology exports.

“Commerce has the pen, and you will have to ask them about their internal processes,” Bessent said, as per news agency AP. “My deputy has been pushing this for months.”

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The dispute comes amid allegations involving former Nvidia CEO Jensen Huang and Megaspeed chief executive Alice Huang. According to a report by The New York Times, Alice Huang is suspected by US intelligence of being a Chinese spy, while Jensen Huang allegedly had an affair with her. China has denied allegations of espionage.

Lutnick has also faced questions over his reportedly close relationship with Jensen Huang. The former Nvidia chief executive has maintained close ties with Trump and visited the White House on September 29 for discussions on artificial intelligence safety.

A New York Times report on Thursday said Lutnick had resisted efforts to impose tighter restrictions on the sale of Nvidia's more advanced chips to China. Chinese companies have reportedly obtained the semiconductors through intermediaries such as Megaspeed, which is said to have purchased more than $4 billion worth of Nvidia's advanced chips.

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The Commerce Department's Bureau of Industry and Security began…

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