Treasury Secretary Blames Commerce Department for Delayed Blacklisting of Megaspeed

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 to place Singapore-based Megaspeed on Washington's trade blacklist for months, but the Commerce Department had not finalized the action.

Bessent said the Commerce Department, led by Howard Lutnick, "has the pen" and must be asked about its internal processes. He expressed frustration that advanced Nvidia chips may have reached China despite President Donald Trump's clear stance 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 core 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 noted that the incident highlights ongoing leakage in export controls and affirmed that the administration is working to close such gaps.