Trump Goons’ Tense Situation Room Clash Is Leaked
Detailed summary
Bessent grilled Lutnick over why a company accused of helping China obtain restricted Nvidia chips escaped sanctions.
A tense clash erupted in Trump’s Situation Room as Scott Bessent grilled a top official over why a company accused of supplying China with U.S. technology escaped sanctions.
Bessent put Commerce Secretary Howard Lutnick on the spot during Thursday’s gathering, confronting him over the failure to blacklist Megaspeed, a major Nvidia customer at the center of an escalating national security scandal, sources familiar with the exchange told Axios.
The confrontation comes as Trump’s buddy and Nvidia CEO Jensen Huang faces mounting scrutiny over his affair with Alice Huang, a former Megaspeed executive whom U.S. intelligence officials have identified as a suspected Chinese intelligence operative.
Megaspeed is under investigation over suspected shipments of advanced Nvidia chips to China. The company reportedly purchased more than $4.8 billion worth of the processors, raising concerns they may have been diverted to Chinese firms in breach of U.S. export restrictions.
Alice Huang is accused of using her connections with Jensen Huang and Nvidia distributors to help secure the chips for Chinese companies.
Nvidia disclosed Sunday that its board would investigate Huang, 63, after he informed directors of his intimate relationship with Alice Huang. Huang has denied having any knowledge of an espionage operation.
During Thursday’s meeting, Bessent reportedly demanded to know why Megaspeed remained off the government’s blacklist despite mounting concerns about its activities.
“How come Megaspeed isn’t on the entities list?” he asked, according to a source briefed on the discussion.
Lutnick appeared caught off guard by the question, initially struggling to respond before telling the Treasury secretary: “I don’t know. I’ll look into it.”
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