Bessent blames commerce department for Megaspeed export control gaps

US Treasury Secretary Scott Bessent blamed the Commerce Department for gaps in export controls surrounding Megaspeed, a Singapore company linked to Nvidia's chip scandal. Bessent noted that four government agencies, including the Treasury, Pentagon, State Department, and US Trade Representative's Office, had pushed for Megaspeed to be added to the entity list for national security reasons.

However, the final decision rests with the Commerce Department, which Bessent said should address its internal processes. The entity list, a trade blacklist of groups posing national security risks, has come under scrutiny due to reports suggesting Lutnick, the Commerce Secretary, delayed President Trump's crackdown on companies suspected of diverting Nvidia chips to China.

Republican Senator John Curtis called for Bessent's resignation, accusing Commerce of acting in the best interests of personal profit rather than the American people. Democrats also demanded Bessent's removal, accusing him of corruption and putting profit above public interest. The scandal has raised questions about Nvidia's vetting of Megaspeed, particularly in light of reports that Jensen Huang, Nvidia's CEO, had an affair with a former Megaspeed executive suspected of being a Chinese spy.

Bessent emphasized the need to hold those responsible accountable and pointed to the administration's efforts to close export system leaks. He stated that the Senate has the authorities needed to implement export controls, urging Congress to act. Senate Banking Committee Chair Tim Scott requested Lutnick's testimony.