Treasury Secretary Scott Bessent says four departments favored placing Megaspeed on an export blacklist, but Commerce, led by Howard Lutnick, did not act. The White House says Trump maintains confidence in Lutnick.
Treasury Secretary Scott Bessent blamed the Commerce Department for the Trump administration not acting sooner against Nvidia customer Megaspeed, a Singapore-based company accused of illegally diverting sensitive AI chips to China.
Bessent told CNBC’s “Squawk Box” that Treasury, War, USTR, and State were in favor of putting Megaspeed on the entity list for months, but Commerce had not acted.
“Treasury, War, USTR, and State were in favor of putting Megaspeed on the entity list for months, but Commerce has the pen,” Bessent said. “You will have to ask them about their internal processes.”
He said he was frustrated when President Trump made it clear that China should not receive any Nvidia chips above A100s, and that any leakage hurts U.S. companies in the AI race and gives China an advantage.
The White House said President Trump maintains complete confidence in Commerce Secretary Howard Lutnick and his ability to carry out the position as the most transformative Commerce secretary in modern history. Trump and Lutnick are longtime friends.
CNN reported that some Trump advisers have discussed whether Lutnick should be dismissed, and that Trump has fielded calls from officials and outside advisors raising concerns about him. CNN also reported that senior Trump officials, including Lutnick, were briefed months ago about Huang’s relationship with Alice Huang, the Megaspeed executive, and that Commerce has so far refused to put Megaspeed on the entity list.
The dispute highlights a split within the Trump administration over export controls on advanced AI chips and whether Megaspeed should be placed on Commerce’s entity list of China-connected companies that could pose national security risks.
Sources
This article was drafted with AI assistance and checked against the sources above. Company claims are reported as claims. Cover image is AI-generated.
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