Howard Lutnick stalled Trump's Nvidia chip crackdown on China despite repeated orders: Report

Detailed summary

Commerce Secretary Howard Lutnick repeatedly delayed export controls targeting companies suspected of diverting Nvidia AI chips to China, as per a report.

US Commerce Secretary Howard Lutnick repeatedly delayed efforts to restrict companies suspected of diverting advanced Nvidia artificial intelligence chips to China. This came even after President Donald Trump approved action on multiple occasions, according to a report by Axios.

During a White House Situation Room meeting on Thursday, Treasury Secretary Scott Bessent challenged Lutnick over the Commerce Department's failure to impose export controls on companies suspected of diverting Nvidia chips to China, particularly Singapore-based Megaspeed International.

The meeting included Defence Secretary Pete Hegseth, US Trade Representative Jamieson Greer and National Security Adviser and Secretary of State Marco Rubio. Lutnick appeared to agree with the proposed restrictions but said he needed to check with Trump, Axios reported, citing six senior sources familiar with the discussions.

The officials later took the discussion to the Oval Office, where Trump called technology adviser Elon Musk before making his decision. Musk supported the position taken by Bessent, Rubio, Greer and Hegseth, while Lutnick warned that tighter restrictions could trigger a trade war with China.

Trump ultimately directed officials to proceed, saying, "Let's get it done", the report said. However, after leaving the Oval Office, Lutnick proposed developing options and returning with them. Other officials insisted that the decision had already been made and the department should implement it.

In a separate report by Axios, there is a detailed Bessent's confrontation with Lutnick, saying the Treasury secretary questioned why Megaspeed had not been placed on the Commerce Department's Entity List, which identifies entities subject to US export restrictions.

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The Commerce Department's spokesperson, Kristen Eichamer, denied that Bessent had confronted Lutnick.

Axios said Trump had…

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