Critics Question Commerce Secretary Lutnick's Oversight of Nvidia AI Chip Exports to China
Lawmakers and experts have raised concerns that Commerce Secretary Howard Lutnick may have failed to prevent Nvidia AI chips from being diverted to China, citing his ties to Chinese firms and a close relationship with former Nvidia CEO Jensen Huang.
Commerce Secretary Howard Lutnick is facing criticism over the Commerce Department's handling of Nvidia AI chip exports that may have been redirected to China. Critics point to Lutnick's previous role as chairman and CEO of Cantor Fitzgerald, which held roughly $1.2 billion in Nvidia stock, and his personal friendship with former Nvidia CEO Jensen Huang as potential factors that limited oversight.
The Department of Commerce is responsible for enforcing export controls, including adding entities to the Entity List to block access to U.S. technology. In 2024, the Bureau of Industry and Security opened an investigation into Nvidia sales to Megaspeed International, a Singapore-based firm suspected of illegally shipping advanced chips to Chinese entities. The probe was later transferred to the Department of Justice, and the Commerce Department has not added any company to the Entity List since October 2025.
Treasury Secretary Scott Bessent recently confronted Lutnick about the failure to place Megaspeed on the Entity List, according to Axios. Council on Foreign Relations China-technology expert Chris McGuire said, ">The real scandal here is the lack of enforcement of export controls," and added that the department had known for about a year that Megaspeed was run by a woman believed by U.S. officials to be a Chinese spy, yet took no action.
Senator Elizabeth Warren, ranking Democrat on the Senate Banking Committee, urged Lutnick and Deputy Undersecretary Jeffrey Kessler to explain why export-control loopholes remain open and called for an immediate pause on Nvidia chip licenses destined for China. In March, Warren wrote to Lutnick demanding such a pause.
Lutnick's business connections to Chinese state-owned firms have also drawn scrutiny. His former firm BGC Group held a 33 % stake in a joint venture with China Credit Trust, and Cantor Fitzgerald helped several Chinese companies list in the United States. These ties were discussed during Lutnick's Senate confirmation hearing, where senators asked how he would safeguard U.S. technology from Chinese influence.
During a hearing, Lutnick told GOP Senator Deb Fischer that he takes "a very jaundiced view of China" and emphasized the need for protection. Since assuming office in February 2025, Lutnick’s family net worth has risen to $7.3 billion, largely due to an indirect stake in cryptocurrency firm Tether, according to Forbes.
Law professor Kathleen Clark of Washington University in St. Louis questioned whether Lutnick is acting in the public interest, describing the situation as raising "a lot of red flags." Huang has publicly described Lutnick as a point of contact for the administration, and a July 2025 Instagram post by Lutnick showed Huang in the Oval Office with President Trump, highlighting the close relationship between the two.