Bessent blames Lutnick's Commerce Department for not restricting Nvidia chips to China

Treasury Secretary Scott Bessent expressed his dissatisfaction with the Commerce Department's slow progress in imposing restrictions on the export of specific Nvidia chips to China. During an appearance on CNBC, Bessent stated that his department, along with State, Defense, and the U.S. Trade Representative, had been advocating for the addition of Megaspeed to an export control list for months.

However, Bessent noted that the Commerce Department was ultimately responsible for implementing these controls. "I am frustrated when President Trump made it very clear China should not receive any Nvidia chips above H100s," he said, adding that he would need to inquire about the Commerce Department's internal processes. Bessent's scathing remarks were an unprecedented public criticism of the Commerce Department, which is responsible for regulating the export of sensitive, high-tech goods.

These comments come at a time when Nvidia's partnership with Singapore-based Megaspeed International, which highlights their collaboration on its website, has become a central issue in the resignation of Nvidia CEO Jensen Huang. Commerce Secretary Howard Lutnick has also faced increasing scrutiny.