Bessent vs. Lutnick: Nvidia Chip Smuggling Sparks US Government Crisis

A dispute between US Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick over alleged Nvidia chip smuggling to China has escalated into a government crisis, with Bessent accusing Lutnick's department of failing to act. Bessent said his department, the Pentagon, the State Department, and the US Trade Representative had for months demanded that Singapore-based Megaspeed International be placed on the Entity List for export restrictions. He expressed frustration, stating President Trump had made clear China should not receive Nvidia chips more powerful than the A100 model. Megaspeed, suspected of smuggling Nvidia chips to China, reportedly grew its assets from $33 million to $3 billion in one year. Senator Tim Scott has summoned Lutnick and Nvidia CEO Jensen Huang for a public hearing, while the White House maintains full confidence in Lutnick.