Bessent Blasts Commerce Department for Stalling Megaspeed Blacklist Action
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Treasury Secretary Scott Bessent said the Commerce Department sat on a proposal from four federal agencies to add Singapore-based Megaspeed to the export-control blacklist, prompting criticism from senators who said the department may be failing American 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 advocated for months to place Singapore company Megaspeed, linked to the Nvidia controversy, on the Commerce Department's entity list, but the Commerce Department had not acted. "But Commerce has the pen," Bessent said, urging lawmakers to look closely at the department's internal processes.
The entity list is a trade blacklist used to restrict entities deemed a national-security risk, particularly 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 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 prevented chip leakage through shell companies, adding that accountability is essential. He affirmed that Congress already possesses the necessary authority 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.