Officials were reportedly concerned that placing the company on the Entity List could worsen the ongoing trade war between Washington and Beijing
The New York Times previously reported that Alice Huang had developed a close relationship with the Nvidia chief and allegedly attempted to influence the company to make its advanced artificial intelligence chips more accessible to China. The board has launched an investigation into the matter.
A top Trump administration official has spent the past year reversing efforts by other government officials to hold Megaspeed, a company accused of illegally diverting US-made chips to China, accountable, amid concerns that taking action against the firm could escalate trade tensions with Beijing, according to a report by Axios. Bessent questioned Lutnick about why the company had not been added to the list, according to sources familiar with the matter who spoke to Axios. Lutnick reportedly responded that he would “look into it”.
The Commerce Department, however, denied that the confrontation took place. The revelations have put Lutnick’s handling of export controls under renewed scrutiny, particularly as the Trump administration faces questions over allegations that Nvidia CEO Jensen Huang had close relationships with individuals suspected of having links to Chinese intelligence. The department’s response to the allegations has also drawn attention following reports about Nvidia’s business relationships and the alleged connections of individuals close to its chief executive to Beijing. Beijing has rejected the espionage allegations, describing them as unsubstantiated. Huang subsequently acknowledged being unfaithful to his wife in a letter to Nvidia’s board, without identifying the woman involved. Meanwhile, Republican leaders of three influential House committees have sought a closed-door briefing from Huang about his interactions with Alice Huang. House Foreign Affairs Committee Chairman Brian Mast has indicated that a congressional subpoena could follow if the Nvidia chief does not agree to appear personally.