Bessent confronts Lutnick over delay in blacklisting Megaspeed accused of aiding China

Treasury Secretary Scott Bessent confronted Commerce Secretary Howard Lutnick during a White House meeting over the administration's failure to blacklist Megaspeed, a company accused of illegally diverting American-made artificial intelligence chips to China. The confrontation occurred in the White House Situation Room on Thursday, shortly after the US midterm elections, according to Axios. Bessent reportedly asked Lutnick why Megaspeed had not been placed on the Commerce Department's Entity List, which restricts national security threats from accessing American technology. Lutnick appeared caught off guard and said he would look into the matter. White House and intelligence officials have pressed Lutnick to act against Megaspeed since autumn 2025, but he resisted partly over concerns about worsening trade tensions with Beijing. The controversy has drawn attention to Nvidia CEO Jensen Huang and Megaspeed employee Alice Huang, suspected of being a Chinese spy, with reports indicating the Commerce Department delayed action despite pressure from multiple agencies.