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Lutnick faces congressional scrutiny over his alleged knowledge of the Nvidia spy scandal and decisions on chip exports to China. The controversy has raised questions over delayed trade blacklisting, export control loopholes and the Trump administration's oversight.
Amid the Nvidia scandal, US Secretary of Commerce Howard Lutnick has been called to testify before Congress. This comes after it was reported that Lutnick might have known about Nvidia CEO Jensen Huang's connection with the alleged Chinese spy. Lawmakers have called on the commerce secretary to detail what the Trump administration knew about Huang's alleged affair with Alice Huang, an alleged Chinese businesswoman and former Megaspeed director. The doubt around Lutnick's role comes as several of his decisions have favoured China, according to reports.
"Secretary Lutnick has proactively agreed to appear voluntarily before the Banking Committee to address their questions," Kristen Eichamer, a spokeswoman for Lutnick, told NBC News.
Lutnick's relationship with Huang has come under scrutiny, particularly after an old video resurfaced in which Huang described Lutnick as the person he spoke to most in the administration. Then comes his several decisions that are now being seen as pro-China. Under Lutnick, the Trump administration delayed adding DeepSeek, China's AI startup, CXMT, a memory chipmaker, and more than 100 other companies flagged as national security risks to the US trade blacklist. Lutnick allegedly stalled Trump's crackdown on companies suspected of diverting Nvidia's AI chips to China. Lawmakers also accused Lutnick and Under Secretary Jeffrey Kessler of failing to close loopholes that could allow advanced American technology to reach China.
Moreover, under the watch of Lutnick, the administration approved sales of Nvidia's H200 AI chips to Chinese companies in December 2025 in exchange for a share of export sales, a decision questioned by lawmakers. US lawmakers alleged that some Chinese companies receiving approval for advanced AI chips had concerning links to the Chinese government, military and sanctioned entities. During a meeting with senior administration officials, Lutnick reportedly said he would have to "talk to the president" when confronted about his reluctance to implement export controls.\
Even Republicans are taking the matter seriously with Republican senator John Kennedy saying that he was unsure if Lutnick should lose his job over the matter, but added that the incident was "as serious as an aneurysm." Senator Ron Wyden of Oregon and Representative Richard Neal of Massachusetts, the top Democrats on the Senate Finance Committee and House Ways and Means Committee, said that they were investigating the administration's approval of sales of Nvidia's advanced AI chips to Chinese companies "with concerning links to the Chinese government, military, and sanctioned entities."
Amid the row, the US president has backed Howard Lutnick. As per Axios, the White House defended the commerce secretary by stating that Lutnick was a “champion of Trump's America first policies.” "President Trump maintains complete confidence in the secretary and his ability to carry out the position as the most transformative Commerce Secretary in modern history," a White House official further told Axios.
Lutnick could lose his job after testifying before the Senate Banking Committee over the Nvidia chip-export controversy, although his appearance alone would not automatically lead to his removal. US President Donald Trump has the authority to dismiss the Commerce Secretary, and Lutnick's position could come under further pressure if his testimony fails to address lawmakers' concerns or exposes gaps in the administration's oversight of advanced AI chip exports to China. Senior White House officials have reportedly already discussed his future amid growing criticism of his handling of export controls.
His position could become particularly vulnerable if his testimony contradicts earlier statements by other administration officials or reveals that he was aware of potential national security risks but failed to act. Bipartisan criticism may create a pressure on him but any criminal investigation or referral would require evidence of wrongdoing.