Howard Lutnick under scrutiny as Nvidia crisis widens
The White House has said President Donald Trump continues to back Howard Lutnick, as the Commerce Secretary faces criticism from Capitol Hill after reports that he delayed action to curb chip smuggling . There were also concerns about whether the government was properly overseeing Nvidia chip exports to China. The New York Times reported on Wednesday that the Commerce Department did not take…
The White House has maintained full confidence in Howard Lutnick, the Commerce Secretary, as criticism mounts on Capitol Hill over allegations of delaying action to curb chip smuggling and improper oversight of Nvidia chip exports to China. The scandal triggered Nvidia CEO Jensen Huang's resignation, after a report emerged about an extramarital affair involving a Megaspeed executive suspected of being a Chinese agent.
Democratic Senator Elizabeth Warren called for Lutnick and Commerce Undersecretary Jeffrey Kessler to explain why they haven't closed export control loopholes to prevent advanced technology from aiding China's military. Republican Senator John Kennedy has also demanded answers from Lutnick regarding approved sales of advanced chips to China.
The Commerce Department has yet to comment on the matter. This follows a recent report revealing Lutnick's controversial relationship with cryptocurrency firm Tether and US-backed deals involving mining companies USA Rare Earth and Vulcan Elements. Despite Huang's resignation, lawmakers remain intent on questioning Nvidia executives over potential national security risks.
Written by urgent.news from The National Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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