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

Treasury Secretary Scott Bessent expressed disappointment on Friday with the Commerce Department's sluggish progress in regulating the export of Nvidia chips to China. The Commerce Department, along with the departments of State and Defense and the U.S. Trade Representative, had been advocating for the inclusion of Megaspeed on an export control list for months, Bessent stated on CNBC.

However, Bessent criticized the Commerce Department for its inability to take action, emphasizing that the department holds the authority over such matters. Bessent's remarks were a stark rebuke of the Commerce Department, which is responsible for overseeing the export of sensitive, high-tech goods. The comments come amid the resignation of Nvidia CEO Jensen Huang, whose ties to Singapore-based Megaspeed have been a contentious issue.

Lutnick, the Commerce Secretary, has been under intense scrutiny for his close association with Huang. The New York Times reported on Thursday that Lutnick had resisted imposing stricter limits on the sale of Nvidia's more advanced chips to China. Chinese entities have been utilizing Nvidia's chips via Megaspeed. The Commerce Department did not issue a response to inquiries seeking information.

Huang terminated his position on Thursday due to revelations about an affair with a former Megaspeed executive, Alice Huang, whom U.S. intelligence agencies suspect of being a Chinese intelligence officer. Megaspeed had been accused last year of secretly shipping advanced Nvidia computer chips into China, but the company claimed there was no evidence to support these allegations.

On Thursday, Megaspeed reiterated its commitment to adhering to American export control laws and pledged to collaborate transparently with the U.S. government.