Commerce Delays Megaspeed Blacklisting as Washington Faces Another Export-Control Failure
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Scott Bessent said multiple agencies supported blacklisting Singapore-based Megaspeed, but the Commerce Department stalled the move, fueling anger over Nvidia chips allegedly reaching China and exposing yet another breakdown in protecting U.S. technology.
U.S. Treasury Secretary Scott Bessent told CNBC that the Treasury Department, the Pentagon, the Office of the U.S. Trade Representative and the State Department had all backed a proposal for months to put Singapore-based Megaspeed on Washington's trade blacklist, but the Commerce Department had not yet completed the action.
Bessent said the Commerce Department, led by Howard Lutnick, "has the pen" and must answer for its internal procedures. He said he was frustrated that advanced Nvidia chips may have reached China despite President Donald Trump's clear position that China should not receive chips above the H100 model.
Investigators allege Megaspeed facilitated the purchase of more than $4 billion worth of Nvidia chips over two years, routing them through data centres in Southeast Asia before they allegedly entered China. The company’s former director, Alice Huang, has been identified by U.S. media as a possible Chinese intelligence asset and was reportedly linked to Nvidia CEO Jensen Huang, who resigned after acknowledging an extramarital affair.
Bessent emphasized that the key issue is whether Nvidia had sufficient controls to prevent its chips from being sold to restricted buyers, questioning the company's due diligence on clients that might act as middlemen for Chinese purchasers. He called for accountability within Nvidia for any lapses.
The matter has attracted congressional interest, with three committee chairs requesting a closed-door briefing with Jensen Huang on November 18. Bessent said the incident underscores ongoing leakage in export controls and affirmed that the administration is working to close such gaps.