Bessent Blames Lutnick's Commerce Department for Not Blacklisting Megaspeed
Treasury Secretary Scott Bessent said Friday that the Commerce Department, led by Howard Lutnick, is responsible for Singapore-based Megaspeed not being added to a US export blacklist over alleged diversion of Nvidia AI chips to China.
Newsnibs Staff
- 2026-11-14
- Updated 7:13 PM UTC
Treasury Secretary Scott Bessent said on Friday that the Commerce Department, led by Secretary Howard Lutnick, is responsible for Megaspeed not being added to a US export blacklist. Megaspeed is a Singapore-based company accused of helping restricted Nvidia AI chips reach China in violation of export controls. Bessent said Treasury had backed putting the company on the list "for months" and that the step was never taken. "Commerce has the pen," he said, adding that he was "frustrated" and that the delay was "very frustrating."
Megaspeed denies illicit exports and wrongdoing, and has said it takes the matter "extremely seriously." Accounts differ on the scale of its dealings with Nvidia. Some describe more than $4 billion in chips purchased, others more than $4 billion traded over two years to get around export controls.
Bessent also addressed the departure of Nvidia CEO Jensen Huang, who left the company on Thursday after revelations of an extramarital affair. Accounts differ on whether Huang resigned or was ousted. The affair was reportedly with Alice Huang, the CEO of Megaspeed, whom US intelligence is said to suspect of being a Chinese spy. She is reportedly in China now. Bessent said the attention on Huang's "personal foibles" distracts from the national security question of whether Nvidia adequately vetted its customers and intermediaries.
Reports have also pointed to Commerce's handling of the matter. One account says Lutnick resisted limiting sales of advanced Nvidia chips to China. Another says President Donald Trump authorized a crackdown on chip diversion in May, August and November, and that Lutnick delayed acting on it. A separate report says staff at the Bureau of Industry and Security were restricted from investigating Nvidia directly after a call between Nvidia General Counsel Tim Teter and Under Secretary Jeffrey Kessler. The call concerned Alice Huang's detention in Singapore. Accounts also differ on which other agencies supported blacklisting Megaspeed, though Treasury and the State Department appear in all of them.
The White House said Trump has "complete confidence" in Lutnick, and called him the "most transformative Commerce secretary in modern history." Lutnick remains in his post. One report says he has been marginalized within the administration, and another cites questions from Trump advisers.
Members of Congress have pressed the issue. Senator Jim Banks called for Lutnick to testify before the Senate Banking Committee, and Lutnick agreed to do so late Thursday. Republican Sen. John Kennedy of Louisiana also called for Lutnick to testify before Congress, using the words "greenlit $4 billion of sales of advanced chips to the company of the spy." Sen. Elizabeth Warren accused Commerce officials of failing to close export control loopholes. Rep. Raja Krishnamoorthi called the situation a "freaking disaster."
Nvidia shares fell 3.31 percent during Friday's trading, to 160.70.
Photo by Bermix Studio on Unsplash
