Bessent blames US Commerce Department for not restricting Nvidia chip exports to China

Treasury Secretary Scott Bessent expressed frustration on Friday regarding the Commerce Department's delay in implementing export controls on certain Nvidia chips to China. Speaking on CNBC, Bessent stated that the Treasury Department, the departments of State and Defense, and the U.S. Trade Representative have favored adding Megaspeed to an export control list for months. He noted that the Commerce Department, led by Howard Lutnick, is responsible for the matter and holds "the pen" regarding internal processes.

Bessent's comments follow President Trump's directive that China should not receive Nvidia chips above H100s. The controversy involves Megaspeed International, a Singapore-based company and Nvidia customer suspected of diverting advanced AI chips to China. According to the South China Morning Post, these developments occur just before a scheduled meeting in Shenzhen between President Trump and Chinese President Xi Jinping.

The situation follows the resignation of Nvidia CEO Jensen Huang. PBS NewsHour reported that Lutnick has faced scrutiny due to a reportedly close relationship with Huang, and that Lutnick had previously resisted placing greater limits on the sale of advanced Nvidia chips to China.

Brief written by urgent.news from South China Morning Post, Quartz, The Hill, PBS NewsHour, The Korea Times — 5 reports on this story. Machine-written — may contain errors; check the original before relying on it.