Treasury chief says four agencies pushed to blacklist Nvidia-linked firm, Commerce held responsible
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Treasury Secretary Scott Bessent said four U.S. agencies wanted Singapore-based Megaspeed added to the Commerce Department's entity list, but Commerce has not yet acted. The remarks highlight mounting concern over chip exports to China, weak enforcement, and whether regulators have moved fast enough to protect U.S. national security.
U.S. Treasury Secretary Scott Bessent told CNBC's Squawk Box on Friday that the Treasury Department, the Pentagon, the State Department and the Office of the U.S. Trade Representative had advocated for placing Megaspeed, a Singapore company tied to the Nvidia controversy, on the Commerce Department's entity list for several months. "But Commerce has the pen," Bessent said, underscoring that the Commerce Department is the one responsible for acting and urging reporters to ask about its internal procedures.
The entity list is a trade blacklist used to restrict entities linked to China that U.S. officials deem a national security risk. The Commerce Department did not immediately respond to a request for comment.
Lawmakers have increased scrutiny of Commerce Secretary Howard Lutnick's handling of export controls on U.S. chips destined for China. Reports this week suggested Lutnick delayed a crackdown ordered by President Donald Trump on firms suspected of diverting Nvidia chips to China.
Megaspeed has drawn attention after reports that Nvidia CEO Jensen Huang had a personal relationship with former Megaspeed executive Alice Huang, whom U.S. authorities suspect of espionage for China. Senior White House officials are reportedly discussing whether Lutnick should be removed amid the scandal.
Bessent said the administration is working to stop "leakage" in the chip-export system and questioned how thoroughly Nvidia vetted its partner company following Huang's departure. "The real story here should be, did Nvidia know their client, and was there a robust effort at Nvidia to make sure that there was no leakage and that they were selling to what were obviously pass-through shell companies?" he said.
When asked whether Congress should intervene on export controls, Bessent replied that the government already possesses the necessary authorities, but they need to be fully implemented and enforced without hesitation.