Nvidia scandal raises new concerns about scale of Chinese spying
China’s espionage efforts are intensifying in its backyard as Beijing continues to expand its military footprint in the South China Sea.
Political fallout from the Nvidia spy scandal expanded to President Donald Trump's cabinet on Friday, as Treasury Secretary Scott Bessent publicly criticized the Commerce Department for not blacklisting a Singapore company suspected of supplying AI chips to China. Bessent's comments, a rare rebuke, put pressure on Commerce Secretary Howard Lutnick, who has agreed to testify before the Senate.
The scandal, which led to Nvidia CEO Jensen Huang's resignation, raised concerns about potential breaches of US export controls. Lutnick, a close friend of Trump, is ultimately responsible for enforcing export controls. Bessent stated that multiple government agencies supported adding the Singapore company, Megaspeed, to Washington's trade blacklist, but Commerce Department was responsible for enforcing the rules.
He expressed frustration over the issue, noting that any leakage hurts US companies and gives China an advantage in the AI race. Lutnick is facing pressure from Congress, with Senator Jim Banks requesting his testimony before the Senate Banking Committee.
Written by urgent.news from The Jakarta Post's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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- Political fallout widens in Nvidia spy scandal thejakartapost.com
- Nvidia scandal raises new concerns about scale of Chinese spying theage.com.au
