WASHINGTON (Diya TV) — Treasury Secretary Scott Bessent publicly faulted the Commerce Department on Friday for not restricting Singapore-based Megaspeed International, a major Nvidia customer accused of helping route advanced AI chips to China. His remarks put Commerce Secretary Howard Lutnick at the center of an intensifying dispute over export controls, national security and the government’s handling of warnings about the company.
Bessent said Treasury, State, Defense and the U.S. Trade Representative had supported placing Megaspeed on the Commerce Department’s Entity List for months. The list can require companies to obtain federal licenses before exporting U.S. goods or technology to designated entities.
“Commerce has the pen, and you will have to ask them about their internal processes,” Bessent said in a televised interview. He added that President Donald Trump had made clear China should not receive Nvidia chips more advanced than the H100. Bessent called any diversion of chips “very frustrating,” arguing it could give Chinese companies an advantage in the artificial-intelligence race.
Megaspeed has faced scrutiny over whether it helped Chinese buyers access restricted Nvidia hardware through overseas data centers and intermediaries. The company says it takes U.S. export rules seriously and will cooperate with authorities. Investigations continue; authorities have not publicly established that Megaspeed illegally diverted chips to China. Malaysia said Friday it was checking whether chips imported by a Megaspeed affiliate were re-exported.
The dispute also exposes competing signals in U.S. chip policy. Commerce announced in January that it would review applications to export Nvidia H200 chips to China case by case, subject to conditions that included customer screening and independent testing in the United States. Nvidia later told investors that licensed H200 shipments required U.S. inspection and faced a 25% tariff. Bessent’s statement that China should receive no Nvidia chips above the H100 highlights the tension between that earlier policy and calls for tighter restrictions.
The export-control questions intensified after Jensen Huang resigned as Nvidia’s CEO on Nov. 12. Huang had acknowledged an affair with Alice Huang, a former Megaspeed executive whom U.S. officials reportedly suspected of links to Chinese intelligence. The Justice Department has not concluded that she was a spy. Singapore said its own investigation concerned possible false declarations involving server purchases—not espionage—and found insufficient evidence that Alice Huang committed those offenses. Singapore said it issued her a warning after determining she gave police inaccurate information about her role at Megaspeed; investigations into the company and others continue.
Congress is seeking testimony and records. Senate Banking Committee Chairman Tim Scott asked Huang to appear Dec. 3 and Lutnick Dec. 10, warning that the committee could subpoena them if they decline. House committee chairs have separately requested a closed-door interview with Huang. Democratic senators Elizabeth Warren and Chris Coons have directed the administration to preserve documents related to Nvidia’s exports, Megaspeed and the reported intelligence concerns.
Bessent said investigators should also examine whether Nvidia adequately screened its customers and took steps to prevent unauthorized transfers. The inquiries will test what federal agencies knew about Megaspeed, how they handled those concerns and whether current controls can keep restricted AI hardware from reaching buyers in China.
