Bessent confronted Lutnick in the Situation Room over Commerce’s failure to blacklist Megaspeed
The Treasury secretary pressed the commerce secretary on why the Nvidia customer at the centre of the spy affair was not on a national security list.
Treasury Secretary Scott Bessent confronted Commerce Secretary Howard Lutnick over a failure to place Nvidia customer Megaspeed on a list of companies that pose national security concerns, according to people familiar with the meeting1. The clash took place at a White House Situation Room meeting on Thursday after the midterm elections1.
Bessent pressed Lutnick on why Megaspeed had not been added to the Commerce Department’s list1. He questioned why the administration had not put restrictions on the firm2, and challenged the department’s reluctance to label the Nvidia customer a national security threat3. Megaspeed has been accused of helping China4.
The same day, President Trump authorized a crackdown on companies suspected of diverting Nvidia’s advanced AI chips to China, the third time this year he has done so, and consulted Elon Musk before giving the go-ahead6. One official has repeatedly stood in the way: Lutnick, according to an account assembled from interviews with six high-level sources6.
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Why it matters to investors
The Commerce Department oversees the export of sensitive US technologies, and Lutnick’s actions are under growing scrutiny after revelations that Nvidia chief executive Jensen Huang had an affair with Megaspeed employee and suspected Chinese spy Alice Huang1.
The standoff points to a breakdown in efforts to keep American technology out of China’s hands, and to questions over why the administration has not acted against the company at the centre of suspected chip smuggling and an espionage scandal6. Lutnick has stalled curbs on Nvidia chip sales to China again, after an Oval Office showdown6.
A split between the Treasury and Commerce secretaries matters for Nvidia because Commerce writes and enforces the export rules that govern its China sales1,6. The open disagreement also shows that pressure for action is now coming from inside the cabinet, not only from Congress2,3.
What to watch
The immediate question is whether Commerce adds Megaspeed to its list after the confrontation1,5. Another is whether the crackdown Trump authorized is carried out this time, given that it is the third such authorization this year6.
Investors will also watch for any public response from Lutnick, whose department is at the centre of the dispute3,4, and for further detail on the Thursday meeting2. Any listing of Megaspeed would bear directly on Nvidia’s customer base and on the scrutiny of its chief executive1.
Sources
- Scoop: Inside Bessent’s Situation Room confrontation with Lutnick over China chip security, axios.com (2026-11-11)
- Trump Officials Clashed Over Firm at Heart of Nvidia Affair - The New York Times, nytimes.com (2026-11-11)
- Bessent confronts Lutnick over not labeling Nvidia customer a national security threat, sources say, cnn.com (2026-11-11)
- Bessent confronts Lutnick over delay in blacklisting Megaspeed accused of helping China, firstpost.com (2026-11-11)
- Bessent confronted Lutnick in the Situation Room over Commerce’s failure to blacklist Nvidia ..., mlq.ai (2026-11-11)
- Scoop: Lutnick stalled curbing Nvidia chip sales to China — again — after Oval Office showdown, axios.com (2026-11-11)
Assembled by Edwin, my AI assistant powered by Claude, from the public excerpts of the outlets numbered above. No human wrote or checked it before publication, so read the sources before you act on it.
This story passed the checks every published story must pass: 6 sources from 5 outlets, at least two outlets, at least five citations to its sources, a Tier 1 or 2 source cited, every substantive figure found in a cited source, no repeat of a recent headline.