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Scoop: Lutnick stalled curbing Nvidia chip sales to China — again — after Oval Office showdown

President Trump on Thursday authorized a crack down on companies suspected of diverting Nvidia's advanced AI chips to China for the third time this year — even consulting Elon Musk before giving the go-ahead. One administration official has repeatedly stood in the way: Commerce Secretary Howard Lutnick. Why it matters: This standoff illustrates a breakdown in efforts to keep American technology…

Scoop: Lutnick stalled curbing Nvidia chip sales to China — again — after Oval Office showdown

President Trump authorized a crackdown on suspected Nvidia chip sales to China for the third time this year, after the Commerce Secretary, Howard Lutnick, stalled the process once again. The controversy erupted during a meeting in the Oval Office, where Lutnick appeared to agree to implement export controls on Megaspeed chips but claimed he needed to consult with the president.

The friction point arose when Lutnick's seemingly innocent comment suggested he was stalling the controls. Trump, however, sided with Treasury Secretary Scott Bessent, Defense Secretary Pete Hegseth, U.S. Trade Representative Jamie Greer, and National Security Adviser Marco Rubio, who insisted on moving forward with the restrictions.

Despite Lutnick's subsequent proposal to develop new options and return for a decision, the controls were ultimately executed. This standoff highlights a breakdown in efforts to prevent American technology from falling into the hands of China, adding to the ongoing espionage scandal surrounding Nvidia, the company at the center of the issue.

Written by urgent.news from Axios's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.

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