MAGA turns on Lutnick amid China spy scandal
Commerce Secretary Lutnick has become the face of the Trump administration's troubled response to Chinese espionage and potential national security threats. The most intense scrutiny is coming from Republicans on the Hill, fellow Cabinet members and the MAGA base. Why it matters: Regulators and policymakers on both sides of the aisle want someone's head for an affair that may have exposed…
Commerce Secretary Lutnick has become the focal point of scrutiny over the Trump administration's handling of Chinese espionage allegations. Republicans on Capitol Hill, fellow Cabinet members, and the MAGA base are most vocal in their criticism. The controversy revolves around suspicions that Singapore-based chipmaker Megaspeed may have illegally exported technology to China.
Treasury Secretary Scott Bessent confirmed that Treasury, War, USTR, and State officials had pushed for Megaspeed to be placed on the Commerce Department's Entity List, but Commerce delayed the action. Lutnick faced intense pressure to testify before Congress, but the White House has not expressed concern over this. Rumors suggest that CIA intelligence warned about Nvidia CEO Jensen Huang's alleged affair with Megaspeed's Alice Huang, a suspected Chinese spy, but Commerce officials allegedly ignored this warning. Despite the scrutiny, Trump remains Lutnick's staunch supporter.
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