Treasury Secretary Bessent Criticizes Commerce Department Over Nvidia Chip Export Delays
Treasury Secretary Scott Bessent said the Commerce Department slowed the addition of Singapore-based Megaspeed International to the export control list, hindering efforts to stop advanced Nvidia chips from reaching China.
U.S. Treasury Secretary Scott Bessent on Friday said the Commerce Department was responsible for the delay in adding Singapore-based Megaspeed International to Washington's export control list, a step aimed at curbing the flow of advanced Nvidia chips to China. Bessent told CNBC that the Treasury, Defense and State departments, along with the U.S. Trade Representative’s office, had supported the listing for months, but implementation rested with Commerce.
"But Commerce has the pen, and you will have to ask them about their internal processes," Bessent said, adding that he was frustrated because President Donald Trump had made clear that China should not receive Nvidia chips above the H100 model.
The Commerce Department, led by Howard Lutnick, has faced scrutiny over its handling of the case. A New York Times report indicated that Lutnick resisted tighter restrictions on Nvidia’s advanced chips, which Chinese firms allegedly accessed through companies such as Megaspeed.
Megaspeed, accused last year of illicitly shipping advanced Nvidia chips to China, denied the allegations, stating there was no evidence of such exports and affirming its commitment to U.S. export-control laws.
Bessent also said media coverage had focused excessively on Nvidia CEO Jensen Huang’s personal life, diverting attention from questions about the company's business practices and possible export-control violations. He emphasized the need to determine whether Nvidia knew its customers and whether the firm had robust safeguards against leakage.
Nvidia’s board announced it will investigate the matter, and chairs of three U.S. congressional committees have scheduled a closed-door briefing with Huang on November 18.