Bessent and Lutnick Clash Over Nvidia China Chip Probe

Behind Closed Doors: Inside the White House Debate

High-stakes discussions unfolded inside the White House Situation Room on November 5 as top administration officials addressed national security and international trade policies. Treasury Secretary Scott Bessent directed a straightforward question to Commerce Secretary Howard Lutnick: why had a key microchip customer, accused of illegally transferring advanced technology to China, not been added to the government's official blacklist?

The subject of the inquiry was Megaspeed, a Singapore-based customer of semiconductor designer Nvidia. Reports indicated that Megaspeed faced allegations of smuggling restricted American artificial intelligence chips into China. Despite these accusations, Commerce Secretary Lutnick reportedly acknowledged that he did not know why the firm remained unlisted. The Commerce Department has not added any new entities to its trade restriction list in over 13 months.

This debate comes at a critical time for the semiconductor industry. Amid regulatory scrutiny and geopolitical headlines, Nvidia experienced a significant market adjustment, losing approximately $700 billion in market valuation during November.