Summary

  • Treasury Secretary Scott Bessent reportedly pressed Lutnick over why no action was taken in connection with allegations that Nvidia semiconductors were diverted to China.
  • The report said questions were raised over why Megaspeed, which faces allegations of rerouting U.S.-made semiconductors to China, was not placed on an export restriction list.
  • The allegations have continued to fuel debate over Nvidia's China-related dealings and the U.S. government's enforcement of semiconductor export curbs.

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Treasury Secretary Scott Bessent pressed Commerce Secretary Howard Lutnick over why no action was taken over allegations that Nvidia semiconductors were diverted to China, Walter Bloomberg reported.

Walter Bloomberg reported on Nov. 11 that Bessent asked Lutnick why Megaspeed, an Nvidia customer, had not been placed on an export restriction list. Megaspeed has been accused of rerouting U.S.-made chips to China.

Lutnick responded, "I don't know. I'll look into it," the report said.

Sources said Lutnick was reluctant to move against Megaspeed despite warnings from intelligence agencies, citing concern that such a step could escalate U.S.-China trade tensions.

The allegations have kept alive controversy over Nvidia's China-related dealings and the U.S. government's enforcement of semiconductor export curbs.

JH Kim