US Treasury Secretary Scott Bessent has criticised the Commerce Department for delaying action on proposed export restrictions involving Nvidia chips and Singapore-based technology company Megaspeed International, exposing disagreements within the Trump administration over technology exports to China.
Speaking to a news agency, Bessent stated that the Treasury Department, alongside the State and Defense departments and the Office of the US Trade Representative, had supported placing Megaspeed on an export control list for several months.
However, he said that the Commerce Department, which oversees US export controls on sensitive technologies, was responsible for implementing the measure. “I am frustrated when President Trump made it very clear China should not receive any Nvidia chips above H100s,” Bessent said.
He added that the Commerce Department had authority over the process, directing questions about the delay to the department. “Commerce has the pen, and you will have to ask them about their internal processes,” he said.
Megaspeed, Nvidia Dealings Draw Scrutiny
The dispute comes amid increased scrutiny of Nvidia’s relationship with Megaspeed, whose website prominently features its partnership with the US chipmaker.
The Singapore-based company has attracted attention over allegations that Chinese firms accessed advanced Nvidia chips through intermediaries, including companies such as Megaspeed.
Last year, Megaspeed faced accusations of illegally shipping advanced Nvidia computer chips into China. The company denied the allegations in December, saying there was “no evidence” that such exports had taken place.
Yesterday, Megaspeed reiterated its commitment to complying with US export control requirements, saying it took those obligations “extremely seriously.” It also said that it was committed to working “constructively and transparently” with the US government.
The company’s relationship with Nvidia has become particularly prominent following the resignation of Nvidia Chief Executive Jensen Huang.
The circumstances surrounding Huang’s departure have attracted attention because of reports concerning his alleged relationship with former Megaspeed Executive Alice Huang and claims about her possible links to Chinese intelligence. According to a news agency, US intelligence officials suspect Alice Huang of being a Chinese spy.
The reports have added to questions about the relationship between major technology companies, foreign business partners and the potential risks surrounding the transfer of advanced computing technology.
Lutnick Faces Questions Over Export Restrictions
US Commerce Secretary Howard Lutnick has also come under increased scrutiny over his reported relationship with Nvidia Chief Executive Jensen Huang and the administration’s approach to restricting chip exports to China.
According to reports, Lutnick had resisted imposing tighter restrictions on sales of Nvidia’s more advanced chips to Chinese customers.
The reports add another dimension to the disagreement over Megaspeed, given that the Commerce Department has responsibility for administering export controls.
Bessent’s comments suggest that several departments within the administration had supported action against the Singapore-based company, but that the decision had remained with Commerce.
The disagreement comes as Washington seeks to limit China’s access to advanced artificial intelligence chips, which are considered important for developing powerful computing systems and military-related technologies.
Nvidia’s products have become central to this policy debate because of their use in artificial intelligence development and high-performance computing.
Restrictions on exports are intended to prevent advanced American technology from reaching Chinese entities that Washington considers potential security risks.
However, the latest developments raise questions about how consistently the administration is applying those restrictions and how different government departments are coordinating their decisions.
Megaspeed’s previous denial of illicit chip exports and its latest statement of cooperation with US authorities underscore the importance of distinguishing allegations from established findings.
Although the company has faced scrutiny over its business dealings and the possibility that its customers or intermediaries supplied advanced chips to China, it hasn’t been established that Megaspeed deliberately violated US export laws.
Meanwhile, the Commerce Department’s response to Bessent’s criticism could help clarify why the proposed restrictions have not been implemented and whether the administration intends to take further action.
The dispute places the department’s export-control responsibilities under renewed attention at a time when Washington is seeking to protect its technological advantage over China.
With several US departments reportedly favouring restrictions on Megaspeed, the next decision rests with Commerce, which must determine whether and how to proceed with the proposed controls.
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