Bessent Says Commerce Department Dragged Its Feet on Adding Megaspeed to Export Blacklist
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Treasury Secretary Scott Bessent accused the Commerce Department of blocking a months-long push by four federal agencies to blacklist Singapore-based Megaspeed, while lawmakers raised alarms about whether the department is protecting U.S. interests or shielding corporate and geopolitical interests.
U.S. Treasury Secretary Scott Bessent told CNBC's "Squawk Box" on Friday that four federal agencies – Treasury, the Pentagon, the State Department and the Office of the U.S. Trade Representative – had pushed for months to place Singapore company Megaspeed, which is linked to the Nvidia controversy, on the Commerce Department's entity list, but the Commerce Department refused to act. "But Commerce has the pen," Bessent said, pressing lawmakers to investigate the department's internal processes and the obstruction inside them.
The entity list is a trade blacklist used to restrict entities deemed a national-security risk, especially those connected to China. The Commerce Department did not immediately respond to a request for comment.
Republican Senator John Curtis questioned whether the department was actually serving American interests, while Democratic Senator Richard Blumenthal called for the removal of Commerce Secretary Gina Lutnick, alleging misconduct. Lutnick has faced criticism for allegedly slowing President Donald Trump's efforts to tighten export controls on U.S. chips destined for China.
Megaspeed has drawn attention after reports that Nvidia co-founder Jensen Huang had a personal relationship with former Megaspeed executive Alice Huang, whom U.S. authorities suspect of espionage for China.
Bessent said the key issue is whether Nvidia verified its customers and stopped chip leakage through shell companies, adding that accountability is essential. He affirmed that Congress already has the authority it needs to enforce export controls, stating, "We have all the authorities that we need. They just need to be implemented."
Senate Banking Committee chair Tim Scott has asked Lutnick to testify on the matter.