USAupdated 18m ago3 min read
Archive photo · 17 January 2025White House Officials Discuss Whether To Remove Commerce Secretary Howard Lutnick
“A US intelligence report circulated among senior figures within the Trump administration earlier this year reportedly warned about Mr Huang’s relationship with Ms Huang”
“The chief executive of the prominent AI semiconductor manufacturer resigned following reports of an affair with Alice Huang, a figure suspected by US agencies of espionage for Beijing.”
Photo: Daniel Torok / US federal government, Public domain · Cropped for layout
This article is an automated aggregation of coverage from news outlets. Our editorials offer in-depth analysis curated by the NewsCord team.
White House officials weigh removing Commerce Secretary Lutnick amid Nvidia spy scandal. Lawmakers criticize Lutnick over Nvidia chip exports to China and blacklist omissions.
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Lutnick’s job questioned
Senior White House officials discussed whether Commerce Secretary Howard Lutnick should be pushed out amid a spy scandal surrounding Nvidia’s now-former CEO Jensen Huang, two people familiar with the situation said. The White House and Commerce Department did not immediately respond to requests for comment after Reuters reported the discussions, and a White House official said President Donald Trump “maintains complete confidence in the secretary and his ability to carry out the position.” Lawmakers criticized Lutnick for the administration’s refusal to add dozens of Chinese companies to a key U.S. trade blacklist and for whether the government was properly overseeing Nvidia’s exports to China.
The criticism of Lutnick’s actions predates Jensen Huang’s resignation, which followed reports of an affair with Alice Huang, whom U.S. authorities suspect of spying for Beijing. Senator Elizabeth Warren said, “Secretary Howard Lutnick and Under Secretary Jeffrey Kessler must explain why they have not closed export control loopholes and act today to ensure our advanced technology is not fueling China’s military.”
Blacklist, oversight, and letters
Senator Elizabeth Warren and incoming Senate Foreign Relations Committee Chair Chris Coons wrote to Lutnick, Secretary of State Marco Rubio, and White House chief of staff Stephen Miller, telling the administration to preserve all documents related to Nvidia’s exports of advanced AI chips to China and related national security risks.
Senator Ron Wyden of Oregon and Representative Richard Neal of Massachusetts wrote to Lutnick saying they were investigating the administration’s approval of sales of Nvidia’s advanced AI chips to Chinese companies “with concerning links to the Chinese government, military, and sanctioned entities.”
The Globe and Mail said the U.S. has not posted any additions to the trade blacklist since October 2025, the longest stretch between new postings in more than a decade.
The Globe and Mail also said Reuters earlier reported the U.S. Commerce Department had not added new Chinese companies to that list for fear of escalating tensions between the U.S. and China.
Representative Brian Mast said Congress needs to investigate the Commerce Department’s role in how it approves chip exports, adding that he has confidence in Lutnick.
Megaspeed and the next steps
Axios reported that Lutnick stalled Trump’s crackdown on companies suspected of diverting Nvidia’s chips to China, and the Republican chair of the Senate Intelligence Committee, U.S. Senator Tom Cotton of Arkansas, urged Lutnick to bar CXMT from the U.S. market.
“How come Megaspeed isn’t on the entities list?”
The Daily Beast said Scott Bessent grilled a top official in Trump’s Situation Room over why Megaspeed, a major Nvidia customer, escaped sanctions, and it quoted Bessent asking, “How come Megaspeed isn’t on the entities list?”
The Daily Beast said Lutnick replied, “I don’t know. I’ll look into it.”
The Daily Beast said Nvidia disclosed that its board would investigate Jensen Huang, 63, after he informed directors of his intimate relationship with Alice Huang, and it said Huang has denied having any knowledge of an espionage operation.
The Telegraph reported that officials were questioning whether Lutnick should be fired after an intelligence report warned about Jensen Huang’s relationship with Alice Huang, and it said Megaspeed was not added to the commerce department’s blacklist of companies posing national security risks.
