What happened
Treasury Secretary Scott Bessent publicly criticized the Commerce Department on Friday for failing to place Singapore-based Megaspeed on the U.S. export-control blacklist, escalating a Cabinet-level dispute over sensitive technology exports.
Bessent told CNBC’s “Squawk Box” that the Treasury, War and State departments, along with the U.S. Trade Representative, had supported adding Megaspeed to the entity list for months. He said Commerce, through its Bureau of Industry and Security, holds the authority to act but has not done so.
“Commerce has the pen — Commerce BIS has the pen,” Bessent said. “And you will have to ask them about their internal process.”
Bessent said he was frustrated by reports that advanced Nvidia chips reached China after President Donald Trump made clear that Beijing should not receive processors more advanced than Nvidia’s H100 models. He said any leakage hurts American companies and gives China an advantage in the artificial intelligence race.
The Treasury secretary shifted attention away from former Nvidia CEO Jensen Huang’s personal conduct and toward whether Nvidia adequately monitored customers and prevented sales to pass-through shell companies. He said anyone at Nvidia responsible for failing to prevent unauthorized transfers should be held accountable.
Megaspeed, a Singapore-based data center company, has reportedly purchased billions of dollars in Nvidia semiconductors. U.S. authorities have investigated whether some chips were illegally smuggled into China.
The dispute follows reports that Bessent confronted Commerce Secretary Howard Lutnick during a White House Situation Room meeting last week over the delay. Bessent declined to discuss the reported exchange. The Commerce Department previously denied that the confrontation took place.
Senate Banking Committee Chairman Tim Scott has requested testimony from Lutnick and Huang. Scott asked Lutnick to appear at a public hearing on December 10 and Huang on December 3, warning that subpoenas could be used if Huang refused to appear voluntarily. Lutnick has agreed to testify voluntarily, according to a Commerce Department spokeswoman.
