US Commerce Secretary Howard Lutnick has reportedly stalled efforts to tighten restrictions on Nvidia’s advanced AI chip exports to China, even after President Donald Trump approved action against suspected diversions for the third time this year. The development comes as Nvidia’s board is weighing whether to remove CEO Jensen Huang over his alleged affair with Chinese spy Alice Huang.According to an Axios report, Lutnick faced a challenge from Treasury Secretary Scott Bessent during a meeting in the White House Situation Room last week on Thursday (Nov 5). Bessent wanted to know why the Commerce Department had failed to move against Megaspeed, a company now at the centre of an alleged espionage scandal.Defence Secretary Pete Hegseth, Secretary of State Marco Rubio and US Trade Representative Jamieson Greer were also present. According to six sources cited by Axios, the officials backed Bessent’s demand.Lutnick appeared to agree, but then remarked, “I need to check with the president.”That answer raised eyebrows. Officials had previously believed the department was ready to act, only for the proposed restrictions to stall. One official described Lutnick’s approach bluntly: “He’s stalling it out.”Trump rejects Lutnick’s trade war warningThe disagreement moved to the Oval Office at around 5 pm. Trump called tech adviser Elon Musk, who backed the arguments made by Bessent, Rubio, Greer and Hegseth.Lutnick warned that imposing the restrictions “will start a trade war with China”. The other officials argued that China was already doing what he feared could happen.Trump sided with his advisers and said, “Let’s get it done.”But the matter was not over. After the meeting, Lutnick proposed developing options and returning with them. Officials pushed back, insisting that the president had already made his decision.“Well, it still hasn’t happened,” one source told Axios.<h2>Lutnick’s repeated resistance</h2>The latest episode follows similar disagreements in May, August and November 5. Trump had approved action on all three occasions, but Lutnick and Commerce Undersecretary Jeffrey Kessler reportedly resisted implementing the controls.The concerns have intensified following intelligence suspicions involving Megaspeed employee Alice Huang and alleged links to Chinese intelligence.Washington has also taken a more permissive approach towards Nvidia’s H200 chip sales to China, allowing exports in exchange for a 25 per cent tariff.The Commerce Department denied that Bessent confronted Lutnick but did not immediately address the other allegations.

Lutnick faces scrutiny for delaying Trump’s crackdown on suspected Nvidia chip diversions to China, despite repeated presidential approvals and mounting espionage concerns surrounding Megaspeed.

US Commerce Secretary Howard Lutnick has reportedly stalled efforts to tighten restrictions on Nvidia’s advanced AI chip exports to China, even after President Donald Trump approved action against suspected diversions for the third time this year. The development comes as Nvidia’s board is weighing whether to remove CEO Jensen Huang over his alleged affair with Chinese spy Alice Huang. According to an Axios report, Lutnick faced a challenge from Treasury Secretary Scott Bessent during a meeting in the White House Situation Room last week on Thursday (Nov 5). Bessent wanted to know why the Commerce Department had failed to move against Megaspeed, a company now at the centre of an alleged espionage scandal. Defence Secretary Pete Hegseth, Secretary of State Marco Rubio and US Trade Representative Jamieson Greer were also present. According to six sources cited by Axios, the officials backed Bessent’s demand. Lutnick appeared to agree, but then remarked, “I need to check with the president.” That answer raised eyebrows. Officials had previously believed the department was ready to act, only for the proposed restrictions to stall. One official described Lutnick’s approach bluntly: “He’s stalling it out.” Trump rejects Lutnick’s trade war warning The disagreement moved to the Oval Office at around 5 pm. Trump called tech adviser Elon Musk, who backed the arguments made by Bessent, Rubio, Greer and Hegseth. Lutnick warned that imposing the restrictions “will start a trade war with China”. The other officials argued that China was already doing what he feared could happen. Trump sided with his advisers and said, “Let’s get it done.” But the matter was not over. After the meeting, Lutnick proposed developing options and returning with them. Officials pushed back, insisting that the president had already made his decision. “Well, it still hasn’t happened,” one source told Axios. Lutnick’s repeated resistance The latest episode follows similar disagreements in May, August and November 5. Trump had approved action on all three occasions, but Lutnick and Commerce Undersecretary Jeffrey Kessler reportedly resisted implementing the controls. The concerns have intensified following intelligence suspicions involving Megaspeed employee Alice Huang and alleged links to Chinese intelligence. Washington has also taken a more permissive approach towards Nvidia’s H200 chip sales to China, allowing exports in exchange for a 25 per cent tariff. The Commerce Department denied that Bessent confronted Lutnick but did not immediately address the other allegations.

Lutnick faces scrutiny for delaying Trump’s crackdown on suspected Nvidia chip diversions to China, despite repeated presidential approvals and mounting espionage concerns surrounding Megaspeed.

Did Lutnick defy Trump over Nvidia’s China chip sales? What we know

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Did Lutnick defy Trump over Nvidia’s China chip sales? What we know