Bessent Presses Lutnick Over Failure to Sanction Alleged Nvidia Chip Diversion to China
Summary
- Treasury Secretary Scott Bessent reportedly pressed Lutnick over why sanctions were not imposed in connection with allegations that Nvidia semiconductors were diverted to China.
- He reportedly asked why Megaspeed, an Nvidia customer accused of indirectly routing U.S.-made semiconductors into China, was not added to an export restriction list.
- The allegations have fueled continued controversy over Nvidia's China-related dealings and the U.S. government's enforcement of semiconductor export restrictions.
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U.S. Treasury Secretary Scott Bessent pressed Commerce Secretary Howard Lutnick over why no sanctions had been imposed in response to allegations that Nvidia semiconductors were diverted to China, according to a report.
Walter Bloomberg reported on November 11 that Bessent asked Lutnick why Megaspeed, an Nvidia customer, had not been placed on an export restriction list. Megaspeed has been accused of indirectly routing U.S.-made semiconductors into China.
Lutnick responded, "I don't know. I'll look into it," the report said.
Sources said Lutnick had been reluctant to act against Megaspeed despite warnings from intelligence agencies because he was concerned such a move could intensify U.S.-China trade tensions.
The allegations have fueled continued debate over Nvidia's China-related business and the U.S. government's enforcement of semiconductor export restrictions.
JH Kim
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