A conflict has arisen within President Trump’s Cabinet regarding the treatment of Megaspeed International, a Singapore-based firm accused of illegally transferring Nvidia chips to China and employing a suspected Chinese spy.
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A dispute has reportedly emerged within US President Donald Trump’s Cabinet over the handling of Singapore-based company Megaspeed International, which is under scrutiny amid allegations of illegal transfers of advanced Nvidia chips to China and claims that a former executive was a Chinese spy.
US Treasury Secretary Scott Bessent has criticised the Commerce Department, led by Howard Lutnick, for failing to place Megaspeed on the government’s Entity List, which restricts foreign companies considered a national security risk from accessing US technology.
According to an Associated Press report, Bessent said on Friday that the Treasury, State and Defence departments, along with the US Trade Representative, had supported adding Megaspeed to the list for months. However, the Commerce Department had authority over the decision.
“I am frustrated when President Trump made it very clear China should not receive any Nvidia chips above H100s,” Bessent said in an interview with CNBC. He added that Commerce “has the pen, and you will have to ask them about their internal processes”.
The comments follow reports of a confrontation between Bessent and Lutnick during a White House Situation Room meeting last week. Axios reported that Bessent questioned why Megaspeed had not been added to the Entity List, with Lutnick responding that he would look into the matter.
CNN also reported that Lutnick did not immediately commit to taking action when challenged by Bessent. However, a Commerce Department spokesperson has denied that a confrontation between the two officials took place, according to media reports.
Megaspeed Under Scrutiny Amid Nvidia Spy Allegations
The controversy has intensified following revelations involving Nvidia CEO Jensen Huang and Alice Huang, a former Megaspeed executive whom US intelligence reportedly suspects of being a Chinese spy. The two are not related.
Jensen Huang reportedly acknowledged an affair with Alice Huang, while the intelligence concerns surrounding her have raised questions about potential access to sensitive information involving Nvidia and its advanced artificial intelligence chips.