USAupdated 1h ago2 min read
Archive photo · 6 February 2025Scott Bessent Blames Howard Lutnick’s Commerce Department Over Nvidia Chips Export Dispute
“blamed the Commerce Department for failing to keep advanced AI chips out of China’s reach.”
“claims Commerce Secretary Howard Lutnick dragged his feet on placing restrictions on a company run by a suspected Chinese spy”
Photo: United States Department of the Treasury / US federal government, Public domain · Cropped for layout
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Scott Bessent blamed Lutnick’s Commerce Department for lack of Nvidia export restrictions to China. Lawmakers, including Tim Scott, demanded Nvidia-related testimony from Jensen Huang and Howard Lutnick.
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Cabinet feud over chips
Treasury Secretary Scott Bessent blamed the Commerce Department for failing to keep advanced AI chips out of China’s reach as tensions between two members of President Donald Trump’s Cabinet burst into public view Friday. Commerce Secretary Howard Lutnick had agreed to testify before Congress, while Bessent faced criticism for the Nvidia dispute.
Bessent told CNBC that Lutnick’s commerce department “has the pen,” as the US had not imposed export restrictions on certain Nvidia chips to China. Jensen Huang resigned from Nvidia on Thursday and was replaced on an interim basis by Colette Kress after reports emerged of Huang’s multiple affairs, including with Alice Huang, who is suspected of being a Chinese spy.
Testimony demands and dates
House and Senate Republicans demanded answers from former Nvidia CEO Jensen Huang and Commerce Secretary Howard Lutnick over Huang’s affair with an alleged Chinese spy and whether the relationship may have influenced business dealings involving Nvidia and China.
Senate Banking Committee Chairman Tim Scott sent letters to both Huang and Lutnick to publicly testify, and the committee requested Huang to appear on Dec. 3 with Chairman Scott threatening to subpoena Huang if he fails to voluntarily appear.
Commerce Department spokesperson Kristen Eichamer said, "Secretary Lutnick has proactively agreed to appear voluntarily before the Banking Committee to address their questions," while the House Foreign Affairs Committee chair Brian Mast, Intelligence Committee chair Rick Crawford, and Select Committee chair John Moolenaar requested written confirmation of Huang’s acceptance by 8 p.m. Friday.
Bessent told CNBC, "You will have to ask them about their internal proceedings," when asked about the reported blowout, and a hearing is scheduled for Dec. 10.
Entity List and accountability
Lutnick faced criticism for a delay by the commerce department in adding Singapore-based Megaspeed, associated with Alice Huang, to Washington’s blacklist of companies that the US considers a risk to national security.
John Curtis, a Utah Republican senator, said Lutnick’s reported delay on export controls regarding Megaspeed “raises the question of whether the commerce department is acting in the best interests of the American people”.
Indiana Sen. Jim Banks called for Commerce Secretary Howard Lutnick to testify before Congress “ASAP” regarding his role in helping Nvidia circumvent legislation to sell its chips to Chinese companies.
Banks, 47, told Fox News’ John Roberts that he hoped for Jensen Huang to come and testify and wanted Lutnick “ASAP” to come testify before the Senate Banking Committee, while it described senior White House officials deciding whether to fire Lutnick, 65.
