Bessent, Lutnick Clash Over Nvidia China Curbs

Treasury Secretary Scott Besson and other senior officials have clashed with Commerce Secretary Howard Lutnick over the administration's failure to place Megaspeed and its leader Alice Huang on the restricted entity list despite intelligence linking the firm to Chinese espionage and the illegal diversion of NVIDIA chips. While Lutnick has resisted imposing immediate trade controls to preserve U.S.-China relations and protect export markets, critics argue this delay constitutes a critical national security breach that allows sensitive technology to reach adversaries. This internal policy split highlights deepening friction within the executive branch regarding China strategy, with reports suggesting that accountability mechanisms will likely escalate if these security compromises persist into the next congressional session.