U.S. Treasury Secretary Scott Bessent expressed frustration with the Commerce Department on Friday, pointing to delays in placing export restrictions on Nvidia advanced artificial intelligence chips linked to an alleged Chinese spy scandal.
The disagreement follows the ousting of Nvidia CEO Jensen Huang after disclosures regarding a personal relationship with a businesswoman allegedly linked to Chinese espionage. Investigations focused on the firm Megaspeed, which probes indicated had smuggled high-specification AI chips into China. Despite government scrutiny, the company was not placed on official trade restriction lists preventing U.S. firms from doing business with them.
Bessent stated that multiple agencies favored stricter oversight, placing pressure on Commerce Secretary Howard Lutnick's department to explain the inaction. The national security fallout has drawn scrutiny from across the political spectrum as lawmakers examine the oversight of advanced semiconductor exports.
