U.S. Treasury Secretary Scott Bessent challenged Commerce Secretary Howard Lutnick over delays in restricting technology exports to Mega Speed amid divisions over China policy, Bloomberg Television reported.
The disagreement put the department responsible for export restrictions at odds with other senior administration officials seeking action against the company. The account aired on “Bessent, Lutnick Clash Over Nvidia China Curbs,” published Nov. 14.
Bessent asked Lutnick why Mega Speed had not been added to the entity list, a U.S. trade blacklist restricting exports of sensitive technology. Lutnick responded that he would look into it.
Senior administration officials had received intelligence raising concerns about the company and possible illegal transfers of sensitive technology to China, Axios reported. Those concerns had prompted calls within the administration to place the company on the blacklist.
The Commerce Department’s Bureau of Industry and Security, headed by Undersecretary Jeff Kessler, handles the list. The company had not been added despite months of internal calls for restrictions.
Nvidia had been lobbying the administration to keep the Chinese market open to its chips. Its push included seeking permission to sell H200 chips, which are powerful but are not the company’s most advanced technology.
The company’s argument was that such sales would keep China dependent on U.S. technology. President Donald Trump and Lutnick were central to that effort because of their authority over export policy.
In an earlier public appearance, Nvidia’s Jensen Huang described his access to Lutnick. “Howard is the person I talk to most in the administration,” Huang said.
Huang also said Lutnick had been the first to learn about a partnership he announced that day. Trump ultimately decides the administration’s policy on chip exports.
Lutnick raised the trade dispute with China and the desire to maintain good relations ahead of a possible trip in November. The Commerce Department denied parts of the account of confrontations within the administration.
Trump agreed to proceed with restrictions on Mega Speed after calling Elon Musk during an Oval Office discussion. Other senior officials supported controls, while the department resisted immediate action.
Secretary of State Marco Rubio oversaw preparation of an intelligence memo in May and shared it with senior administration officials. He also personally handed it to Trump aboard Air Force One.
The department had begun a process to stop remote access to sensitive technology, another route through which it could reach China. The discussion gave no deadline for completing that process or adding Mega Speed to the blacklist, and left unresolved why the earlier intelligence had not led to restrictions.
