US Treasury chief blames Commerce Dept for Nvidia chip leak to China

US Treasury Secretary Scott Bessent publicly blamed the Commerce Department on Friday for failing to blacklist Singapore-based Megaspeed, a company at the center of a scandal that led to Nvidia CEO Jensen Huang's resignation. Bessent said Treasury, Defense, the US Trade Representative's office, and State had supported adding Megaspeed to the trade blacklist for months, but "Commerce has the pen." He expressed frustration over chip leakage to China, saying it hurts US companies and gives China an advantage in the AI race. Megaspeed is suspected of routing Nvidia chips to China, trading over $4 billion worth in two years. Huang resigned Thursday after acknowledging an extramarital affair. Bessent said the real story is whether Nvidia knew its clients and whether accountability is needed for pass-through shell companies.