Cabinet Clash Over Megaspeed: Bessent Presses Lutnick as Nvidia Spy Scandal Widens

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A Tense Meeting After the Midterms

According to Axios, the meeting took place on Thursday, November 5, just after the midterm elections. Bessent asked Lutnick why Megaspeed had not been added to the Commerce Department's Entity List. Lutnick reportedly answered that he did not know and would look into it.

Other senior officials were present, including Defense Secretary Pete Hegseth, Secretary of State Marco Rubio and Trade Representative Jamieson Greer. Axios reports that several of them sided with Bessent.

The Entity List is a Commerce Department list of foreign companies that Washington considers a serious risk to national security. Companies on it face tight limits on buying sensitive American technology, such as advanced AI chips.

"Let's Get It Done"

Axios reports that President Trump had approved action against companies suspected of diverting Nvidia chips to China three times: in May, in August and again on November 5. Fox News reports that Trump repeated the order in the Oval Office that day.

Lutnick reportedly still said he would first prepare options. The officials replied that the president's decision was final and that Commerce had to carry it out. Reports also say Commerce has not added any company to the Entity List in more than a year.

Bessent has declined to confirm the details. He said the officials do not repeat conversations from the Situation Room. He did say that Treasury, Defense, State and the Trade Representative's office had backed blacklisting Megaspeed for months, and that Commerce controls the list. Fortune summarized his stance as "Commerce has the pen."

The Scandal Behind the Fight

The pressure comes from the Nvidia affair. The New York Times reported that U.S. intelligence agencies believed Alice Huang, a top Megaspeed executive who also goes by Huang Le, was passing information to the Chinese government. She is not related to Jensen Huang.

Jensen Huang resigned as Nvidia CEO on Thursday, November 12. Chief Financial Officer Colette Kress is interim CEO. According to AP, the board was already weighing his future. A second reported affair with an Nvidia employee added to the pressure, though AP could not independently confirm that report.

Nvidia says it has no reason to believe national security or company secrets were compromised, and its board has opened an independent investigation. Megaspeed says it takes export laws seriously and will cooperate with U.S. authorities. The company earlier denied smuggling chips to China. Singapore authorities have said they questioned Alice Huang and took her passport last year as part of their own probe.

Commerce Pushes Back

A Commerce spokesperson did not directly address the confrontation report. She said Commerce and Treasury work well together and support the president's agenda. She also said Lutnick will voluntarily testify before the Senate Banking Committee. That hearing is scheduled for December 10.

Why It Matters

Washington has spent years trying to keep China from getting the most advanced AI chips. Beijing's government has a record of using business ties and personal connections to gather technology and information, which is why officials treat any possible leak seriously.

The story shows how the president's export-control orders are being carried out inside his own administration. The Senate hearing on December 10 should show how much of the delay Commerce can explain. Trump has said the FBI is looking into the Nvidia matter. He also suggested Apple CEO Tim Cook as a replacement for Huang.

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Sources

1. Axios – "Scoop: Inside Bessent's Situation Room confrontation with Lutnick over China chip security" (Nov. 11, 2026): https://www.axios.com/2026/11/11/bessent-lutnick-megaspeed-nvidia-china-chips
2. Associated Press – "Nvidia CEO Jensen Huang resigns after his affair raises national security concerns" (Nov. 12, 2026): https://www.mprnews.org/story/2026/11/12/nvidia-ceo-jensen-huang-resigns-after-his-affair-raises-national-security-concerns
3. Fortune – "Scott Bessent says Treasury wanted to blacklist Megaspeed 'for months'…" (Nov. 13, 2026): https://fortune.com/2026/11/13/scott-bessent-treasury-blacklist-megaspeed-howard-lutnick-nvidia-jensen-huang/
4. The Irish Times – "Bessent points finger at Lutnick as Nvidia row ignites Washington blame game" (Nov. 13, 2026): https://www.irishtimes.com/world/us/2026/11/13/bessent-points-finger-at-lutnick-as-nvidia-row-ignites-washington-blame-game/
5. Fox News – "Two top Trump Cabinet officials go to war over China spy scandal amid explosive accusations: report": https://www.foxnews.com/politics/two-top-trump-cabinet-officials-go-war-over-china-spy-scandal-amid-explosive-accusations-report

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