Scoop: Inside Bessent's Situation Room confrontation with Lutnick over China chip security
Treasury Secretary Scott Bessent confronted Commerce Secretary Howard Lutnick over a failure to place Nvidia customer Megaspeed on a list of companies that pose national security concerns, sources familiar told Axios. Why it matters: The Commerce Department oversees the export of sensitive U.S. technologies and Lutnick's actions — or lack thereof — are increasingly under scrutiny following…
Treasury Secretary Scott Bessent confronted Commerce Secretary Howard Lutnick at a White House Situation Room meeting on Thursday, questioning why Megaspeed had not been listed among companies posing national security concerns. Lutnick responded that he would "look into it." Commerce Undersecretary Jeff Kessler, who had also been warned about Megaspeed in deputy meetings, deferred to Lutnick, stating that it was a decision for the secretary.
Lutnick had spent the past year undoing efforts by other administration officials to hold Megaspeed accountable for allegedly diverting U.S. chips to China. Sources said Lutnick has been resisting action against Megaspeed since receiving a memo from National Security Adviser and Secretary of State Marco Rubio outlining the company's issues.
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