Treasury Secretary Scott Bessent has publicly criticised Commerce Secretary Howard Lutnick over the handling of a Singapore-based technology company accused of helping divert advanced Nvidia chips to China.
Speaking during an appearance on CNBC on Friday morning, Bessent said several US government departments had supported placing Megaspeed on the Commerce Department’s Entity List for months, but the department had failed to approve the move.
“Treasury, War, USTR and State were in favor of putting Megaspeed on the entity list for months,” Bessent said.
He added: “But Commerce has the pen. And you will have to ask them about their internal processes.”
His comments appeared to place responsibility for the delay directly on Lutnick and his department, exposing disagreements within President Donald Trump’s administration over how the alleged technology transfers should be handled.
Megaspeed Faces Allegations Over Nvidia Chips
Megaspeed, a data company based in Singapore, is under scrutiny over suspicions that it helped channel advanced Nvidia microchips to China in violation of US export restrictions.
The restrictions are designed to limit China’s access to cutting-edge semiconductor technology used in artificial intelligence development and protect America’s position in the global technology race.
US officials suspect the company may have obtained high-performance Nvidia chips and supplied them to Chinese interests in an attempt to circumvent existing export controls.
Megaspeed has denied allegations that it provided advanced chips to China.
An internal proposal to place the company on the Commerce Department’s Entity List was reportedly circulated but never received Lutnick’s approval.
Companies added to the list face significant restrictions on their ability to access American technology and products, including advanced semiconductor chips.
Despite the allegations, Megaspeed had not been added to the list as of Friday morning.
Jensen Huang’s Departure Adds to Controversy
The dispute has unfolded alongside revelations surrounding former Nvidia chief executive Jensen Huang, who reportedly stepped down from the company on Thursday after 33 years at the helm.
His departure followed reports of multiple extramarital affairs, including an alleged relationship with Alice Huang, a former executive at Singapore-based data firm Megaspeed who is suspected of being a Chinese spy.
Alice Huang is accused of attempting to influence the former Nvidia chief executive to ease restrictions on the company’s advanced microchips being exported to Asian markets.
The allegations have raised concerns about whether personal relationships may have played a role in efforts to influence decisions involving sensitive American technology.
Reuters also reported on Thursday that Jensen Huang had a third extramarital affair, with the second reportedly involving a subordinate at Nvidia.
The identity of the woman and her specific position within the company have not been publicly disclosed.
Lutnick Agrees to Face Senate Questions
Lutnick has agreed to testify before the Senate Banking Committee next month about his role in overseeing the US government’s relationship with Megaspeed, CBS News reported on Friday.
Lawmakers are particularly interested in why the Singapore-based company was not added to the Commerce Department’s Entity List despite concerns raised by other government agencies.
The proposed restrictions would have significantly limited the company’s access to American semiconductor technology.
The upcoming hearing is expected to give senators an opportunity to question Lutnick about the department’s internal decision-making process and the delay in taking action against Megaspeed.
Federal Investigations Underway
The controversy has also attracted the attention of federal law enforcement agencies.
The US Department of Justice is conducting a criminal investigation into Megaspeed, according to sources cited by Bloomberg News.
Separately, the US Attorney’s Office in Manhattan is investigating whether Alice Huang was involved in secretly transferring advanced microchips to China.
The investigations are examining allegations surrounding the movement of Nvidia technology and possible attempts to bypass American export restrictions.
Meanwhile, Bessent’s public remarks have brought disagreements within the Trump administration into the open, with the Treasury secretary indicating that several departments had supported action against Megaspeed while the final decision remained with the Commerce Department.
