Commerce Secretary Lutnick faces resignation calls over Nvidia chip exports
Treasury Secretary Bessent says Commerce delayed restrictions on chip exports to a company tied to an alleged Chinese spy.
Latest · Nov 14 Treasury Secretary Bessent says Commerce delayed restrictions on chip exports to a company tied to an alleged Chinese spy.
Calls for Commerce Secretary Howard Lutnick to step down are growing after Treasury Secretary Scott Bessent said Commerce had delayed restrictions on Nvidia chip exports to a company led by an alleged Chinese spy. Senator Richard Blumenthal, a Connecticut Democrat, said Lutnick "must go." According to Axios, Lutnick slowed efforts to place Singapore-based Megaspeed on the Commerce Department's Entity List, which would have restricted U.S. tech exports to the company. Officials suspected Megaspeed of illegally diverting chips to China. Bessent said Treasury, War, USTR and State had favored the move for months, but that Commerce "has the pen."
Nvidia CEO Jensen Huang stepped down from his chief role on Thursday after claims about his conduct came to light. Republicans in Congress and the MAGA base are also criticizing Lutnick, according to Axios.
Key points
- Bessent said he was frustrated with the Commerce Department's delay.
- Trump supported taking action against Megaspeed, according to Axios.
- Blumenthal is a Democrat from Connecticut.
Read the original reporting (3)
Earlier coverage
- Nvidia stock falls for six straight weeks as Bessent and Lutnick clash over chip exports
Nvidia has lost $657 billion in market value this week, its sixth consecutive week of stock declines, a losing streak not seen in 14 years. The slide followed the resignation of CEO Jensen Huang. Treasury Secretary Scott Bessent said on CNBC that Treasury, along with the State, War, and Trade Representative offices, had favored placing Megaspeed on the entity list for months. He said the Commerce Department "has the pen." Bessent said he was frustrated that China should not receive Nvidia chips above the H100 model. Megaspeed, a Singapore-based customer, is under investigation by U.S. and Singaporean authorities and reportedly paid more than $4.8 billion for Nvidia chips over two years. Congress is looking into the matter. Huang has agreed to a closed-door briefing by Thanksgiving and was asked to appear at a Senate Banking Committee hearing on Dec. 3. Commerce Secretary Howard Lutnick has agreed to testify on Dec. 10.
Why it mattered: Nvidia is one of the largest companies in the U.S. stock market, so its losses affect retirement accounts and index funds. The dispute also concerns whether advanced American chips are reaching China, which is a national security issue.
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