Commerce Secretary Howard Lutnick to testify before Senate Banking Committee amid Nvidia export concerns
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Commerce Secretary Howard Lutnick to testify before Senate Banking Committee amid Nvidia export concerns

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Summary

Howard Lutnick has agreed to face the Senate Banking Committee as lawmakers press for answers about whether the Commerce Department let Nvidia's AI chip exports to China slip through loopholes that could threaten national security.

Commerce Secretary Howard Lutnick has agreed to testify before the Senate Banking Committee after Senate Banking Chair Tim Scott issued a subpoena amid fresh reports that Nvidia's advanced artificial-intelligence chips may have been supplied to Chinese companies. The committee has scheduled Lutnick's hearing for Dec. 10, following a separate hearing for former Nvidia CEO Jensen Huang on Dec. 3.

The letters sent to both officials request testimony on "public reports about NVIDIA and the Department of Commerce's role that raises national security concerns," according to the summons.

"Secretary Lutnick has proactively agreed to appear voluntarily before the Banking Committee to address their questions," spokesperson Kristen Eichamer told NBC News.

Lawmakers are examining whether the Commerce Department has adequately restricted AI chip sales to China and whether export-control loopholes were used to keep shipments flowing. Senator Jim Banks criticized the department's handling of chip sales, while Senator Elizabeth Warren, who will chair the committee in January, said Lutnick and Under Secretary Jeffrey Kessler must explain why export-control gaps remain. In a joint letter with incoming Senate Foreign Relations Chair Chris Coons, they called for preservation of all documents related to Nvidia chip exports to China.

Senator Ron Wyden and Representative Richard E. Neal said they are investigating approvals of Nvidia sales to entities linked to the Chinese government, military or sanctioned parties. Representative Brian Mast said Congress should investigate the Commerce Department's role in the approvals, but expressed confidence in Lutnick's leadership.

The issue comes as the administration faces scrutiny for not adding more than 100 companies, including Chinese AI startup DeepSeek and memory-chip maker CXMT, to a trade blacklist, a move reported by Reuters in June. Lutnick has known President Donald Trump for several decades and is considered a close confidant of the president.

Source

CNBC

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