Howard Lutnick shielded chip firm tied to Chinese spy case, report says

Commerce Secretary Howard Lutnick has spent the past year blocking efforts to sanction Megaspeed, a company accused of illegally diverting US-made chips to China, over fears of escalating trade tensions with Beijing, according to Axios. Treasury Secretary Scott Bessent confronted Lutnick about the firm's absence from the Entity List during a White House Situation Room meeting, though the Commerce Department denied the exchange. The dispute centers on Megaspeed's alleged role in chip diversion, with officials reportedly concerned that blacklisting the company could worsen the ongoing trade war. Commerce undersecretary Jeff Kessler deferred the matter to Lutnick, saying "That's a decision for the secretary," after being repeatedly alerted to concerns about the firm. The revelations add to scrutiny of Nvidia CEO Jensen Huang, who faces questions over his relationship with Alice Huang, a Megaspeed director identified as a suspected Chinese intelligence asset. Huang acknowledged infidelity to his wife, and House Republican leaders have sought a closed-door briefing, with a possible subpoena threatened if he declines.