Lutnick stalls Trump-approved crackdown on Megaspeed's Nvidia chip diversions, Axios reports
Treasury Secretary Scott Bessent confronted the commerce secretary over why Nvidia customer Megaspeed is not on the entity list; Lutnick reportedly warned curbs would start a trade war with China, and the administration denies any clash.
Why it matters
The dispute moves the Nvidia spy affair from a question of corporate governance into US export policy. Megaspeed, where alleged Chinese intelligence asset Alice Huang was an executive, has bought about $4 billion of Nvidia chips, some reportedly sent to sanctioned buyers, yet it is still not on the Commerce Department's entity list. The administration has scaled back entity-list use against China over the past year as trade ties improved. Watch whether Commerce adds Megaspeed, and whether Congress presses Lutnick as it is pressing Jensen Huang.
Key facts
- Bessent confronted Lutnick in the White House Situation Room last Thursday
- Lutnick reportedly said curbs "will start a trade war with China"
- Hegseth, Greer and Rubio sided with Bessent, Axios reports
- Trump told Lutnick "let's get it done", Axios reports
- Megaspeed has bought about $4 billion of Nvidia chips, per the NYT
- The administration denies the confrontation happened