Trump administration ministers clash over Nvidia chip exports to China

According to a report by Aaj Tak, a dispute has escalated among US President Donald Trump’s ministers regarding chipmaker Nvidia’s connections to China, leading to heated discussions. The entire matter came to light amidst questions regarding what Donald Trump knew about intelligence concerns linked to Jensen Huang prior to his visit to China in May.

According to information provided by Aaj Tak, US Treasury Secretary Scott Bessent argued and debated with Commerce Secretary Howard Lutnick over the fact that the Commerce Department has failed to blacklist Nvidia’s customer, Megaspeed. In this entire case of Nvidia chips reaching China, Megaspeed has been accused of illegally sending advanced US chips to China. This matter has emerged amidst the administration’s investigations and concerns.

Citing an Axios report, the article states that during a White House Situation Room meeting following the US midterm elections, Scott Bessent asked Howard Lutnick why the company Megaspeed had not been included in the Commerce Department’s entity list. This entity list serves to identify companies that pose a threat to national security. Sources stated that Lutnick initially appeared uncomfortable answering and subsequently stated that he would investigate the matter. Sources also told Axios that Lutnick had spent time last year thwarting efforts by other administration officials to hold Megaspeed accountable, partly due to concerns that blacklisting the company could escalate trade tensions with China. However, the Commerce Department has denied that any confrontation took place between Scott Bessent and Howard Lutnick.

Regarding this matter, President Donald Trump himself told The New York Times that he was not informed about these concerns before the trip. However, a US official and others involved in the matter informed the newspaper that Secretary of State Marco Rubio had briefed Donald Trump on Air Force One when he learned that Jensen Huang was to be part of the President’s delegation. It is also said that despite receiving the warning, Trump continued with his plans. Marco Rubio oversaw a classified intelligence memo sent to senior administration officials prior to this trip. It was speculated that Alice Huang, a Chinese national linked to Singapore’s Megaspeed, had been recruited by China’s Ministry of State Security and had close ties with Jensen Huang. Commerce Undersecretary Jeff Kessler was also repeatedly warned about Megaspeed during deputy-level meetings, but he left the decision to Lutnick, stating that the decision had to be made by the Secretary.

Amidst this entire controversy, Nvidia’s board has announced an impartial investigation into the matter, which will be overseen by independent directors and external lawyers. Company head Jensen Huang has also promised full cooperation in this investigation. Thus, this dispute among Trump’s ministers regarding Nvidia has also brought to light the growing frustration among national security officials regarding the implementation of export controls by the Commerce Department.