Treasury Says Commerce Sat on Megaspeed Blacklisting as Chip Export Loopholes Keep Serving Big Tech and Security Interests
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U.S. Treasury Secretary Scott Bessent said several agencies backed blacklisting Singapore-based Megaspeed for months, but the Commerce Department failed to act, exposing how export controls can be blunted while Nvidia chips and alleged Chinese espionage remain at the center of a growing scandal.
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 place Singapore-based Megaspeed on Washington's trade blacklist, yet the Commerce Department still had not finalized the action.
Bessent said the Commerce Department, led by Howard Lutnick, "has the pen" and should be pressed on its internal decision-making. He said he was frustrated that advanced Nvidia chips may have reached China even though President Donald Trump has made clear that China should not receive chips above the H100 model.
Investigators allege Megaspeed helped arrange the purchase of more than $4 billion worth of Nvidia chips over two years, channeling 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 stressed that the central question is whether Nvidia had enough safeguards to stop its chips from being sold to restricted buyers, and he raised doubts about the company’s due diligence on clients that could function as middlemen for Chinese purchasers. He called for accountability inside Nvidia for any failures.
The issue has drawn congressional attention, with three committee chairs requesting a closed-door briefing with Jensen Huang on November 18. Bessent said the episode shows continuing leakage in export controls and said the administration is working to close those gaps.