Bessent blames Commerce Dept over lack of export controls for Nvidia partner Megaspeed

US Treasury Secretary Scott Bessent blamed the Commerce Department for the lack of export controls on Nvidia partner Megaspeed, despite four other government agencies favoring the addition of the Singapore company to a trade blacklist. The Treasury, Pentagon, State Department, and U.S. Trade Representative's Office had all advocated for Megaspeed's inclusion on the Commerce Department entity list for months, but Bessent told CNBC's Squawk Box that the Commerce Department ultimately holds the authority to implement the controls.

The entity list serves as a trade blacklist of groups connected to China and deemed to pose national security risks. The Commerce Department has not yet commented on the matter. Critics are questioning Bessent's efforts in overseeing export controls, as Lutnick reportedly delayed President Trump's crackdown on companies suspected of diverting Nvidia's chips to China.

Megaspeed has come under scrutiny following reports of a relationship between Jensen Huang, Nvidia's CEO, and a former Megaspeed executive who is suspected of being a Chinese spy. There are calls from US lawmakers for stricter restrictions on China's access to advanced AI chips, with Bessent emphasizing the need for accountability and implementation of existing authorities.