“Commerce Has the Pen”: Bessent Points Finger at Lutnick Over Nvidia Partner Megaspeed

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A Public Blame Game

Speaking on CNBC's "Squawk Box" on Friday, Bessent said the Treasury Department, the Pentagon, the State Department and the US Trade Representative's office had all favored adding Megaspeed to the so-called Entity List. According to him, that support had existed for months.

The decision, however, rests with Commerce. "Commerce has the pen," Bessent said, and he told viewers to ask that department about its internal processes. Commerce did not immediately respond to a request for comment from Reuters.

The Entity List is a trade blacklist. It restricts which American technology can be sold to foreign companies that US officials consider a risk to national security. Many of the listed groups have ties to China.

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Who Is Megaspeed, and Why Does It Matter?

Megaspeed is a Singapore-based cloud computing company and a major Nvidia customer. CNN, citing estimates, reports that it bought more than $4 billion worth of Nvidia chips. US officials suspect the company helped channel advanced processors to China, which would violate American export rules. Megaspeed denies any wrongdoing and calls itself a compliant, legal business.

The case became explosive because of a personal link. Jensen Huang, who stepped down as Nvidia's CEO this week, had an affair with Alice Huang, a former Megaspeed executive. US authorities reportedly suspect her of being a Chinese intelligence asset. Her role has not been proven in court, and the investigations are still ongoing.

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Pressure on Commerce Secretary Lutnick

The spotlight is now on Commerce Secretary Howard Lutnick. Axios reports that Bessent confronted him in a White House Situation Room meeting on November 5, with Defense Secretary Pete Hegseth and Secretary of State Marco Rubio present, asking why Megaspeed was not on the list. Commerce has denied reports of a heated clash. It says Entity List decisions are made collectively across the administration.

Other reports add to the pressure. The New York Times reported that a Commerce investigation into Megaspeed was handed to the Justice Department after Nvidia's top lawyer contacted officials, and that the Justice Department then asked Commerce to pause its work. The Times also reported that Commerce had not added a single company to the list in more than a year, the longest gap in 18 years.

Reuters reported on Thursday that senior White House officials are discussing whether Lutnick should leave his post. Media outlets also report that he stalled President Donald Trump's push against companies suspected of diverting Nvidia chips. Trump reportedly approved action against such diversions three times this year.

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"Did Nvidia Know Its Client?"

Bessent did not only target his Cabinet colleague. He said the real question is whether Nvidia knew its customer, and whether the company made a serious effort to prevent "leakage" of chips to what looked like pass-through shell companies. He said anyone at Nvidia responsible should be held accountable.

He also said the administration is working to close gaps in the chip export system. Asked whether Congress needs to pass new laws, he answered that the government already has all the authority it needs. In his view, those powers simply have to be enforced.

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Background: The China Chip Problem

Washington has restricted China's access to top-tier AI chips for years, because such technology can strengthen both Beijing's military and its surveillance state. The Chinese Communist Party (CCP) openly pursues a strategy of merging civilian technology with military goals, which is why smuggling routes through third countries like Singapore are a serious concern.

The case also carries political weight. Placing a major Nvidia customer on the list could strain relations with Beijing at a time when President Trump is trying to manage trade talks with China. Democratic senators Elizabeth Warren and Chris Coons have asked the administration to preserve documents on Nvidia's chip exports. Several lawmakers are calling for tougher limits on China's access to advanced chips.

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Outlook

The key questions are now clear. Will Commerce finally act on Megaspeed? Will Lutnick keep his job? And what will the Justice Department's investigations, including a probe tied to Alice Huang, uncover? Nvidia's board has announced an independent investigation, and Huang has pledged to cooperate.

For President Trump, the episode is a test of whether his tough line on chip exports to China is carried out by every part of his own administration. Bessent's message was that the tools exist; the open question is who uses them.

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Sources

1. Reuters – "Bessent blames Commerce Dept over lack of export controls for Nvidia partner Megaspeed" (Nov 13, 2026): https://www.reuters.com/business/retail-consumer/bessent-says-treasury-favored-limits-megaspeed-2026-11-13/
2. Axios – "Bessent puts Megaspeed heat on Lutnick: 'Commerce has the pen'" (Nov 13, 2026): https://www.axios.com/2026/11/13/bessent-lutnick-megaspeed-nvidia
3. CNN – "Bessent points finger at Commerce Department in Nvidia scandal as Trump advisers discuss possible Lutnick ouster" (Nov 13, 2026): https://www.cnn.com/2026/11/13/politics/bessent-lutnick-nvidia-megaspeed-blame
4. The Tribune (India), summarizing CNN – "US Treasury Secy confronts Commerce Secy over reluctance to flag Nvidia chip buyer Megaspeed as security threat": https://www.tribuneindia.com/news/usa-news/us-treasury-secy-confronts-commerce-secy-over-reluctance-to-flag-nvidia-chip-buyer-megaspeed-as-security-threat/
5. RedState – "Nvidia China Chip Scandal: Lutnick Reportedly Defied Trump, Faced Off With Cabinet Officials" (Nov 12, 2026): https://redstate.com/jenvanlaar/2026/11/12/bessent-confronts-lutnick-at-white-house-over-nvidiamegaspeed-n2209297
6. IBTimes UK – "Trump's Commerce Secretary Reportedly Blocked Crackdown on Suspected Nvidia Chip Smuggling to China": https://www.ibtimes.co.uk/trump-nvidia-chip-diversions-china-export-controls-1831866

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