From CNBC · Kevin Breuninger,Lim Hui Jie · · 1m 40s
Bessent blames Commerce over Nvidia chip leaks to China
Treasury Secretary Scott Bessent says multiple departments backed export controls on Megaspeed, but Commerce Department has resisted implementing them.
In brief
Treasury Secretary Scott Bessent says multiple departments backed export controls on Megaspeed, but Commerce Department has resisted implementing them. Treasury Secretary Bessent says his department and others backed restricting Megaspeed exports for months, but Commerce Department has blocked the move. Originally…
Bessent: multiple departments backed export controls
Treasury Secretary Scott Bessent told CNBC that Treasury, Defense, State and the Office of the U.S. Trade Representative all supported putting Megaspeed on the entity list for months.
“were in favor of putting Megaspeed on the entity list for months”
Commerce Department in charge, Bessent says
But the Commerce Department is in charge of export controls, and Bessent said you will have to ask them about their internal processes.
“and you will have to ask them about their internal processes”
Lutnick resisted implementing export controls
According to Axios, Commerce Secretary Howard Lutnick has repeatedly stood in the way of cracking down on companies suspected of diverting Nvidia's advanced AI chips to China.
Bessent frustrated by chip leakage to China
Bessent said he is frustrated when President Trump made it very clear that China should not receive any Nvidia chips above H one hundred s, and any leakage hurts American companies in the AI race.
“any leakage is very frustrating”
Huang pushed to ease chip export restrictions
Jensen Huang, who resigned as Nvidia CEO on Thursday after admitting to an affair, had pushed the U.S. government to ease restrictions on exporting advanced AI chips to China.
Bessent questions Nvidia's due diligence
Bessent said the real story should be whether Nvidia knew their client and made a robust effort to ensure no leakage to obvious pass-through shell companies, and anyone at the company should be held accountable.
“Did Nvidia know their client, and was there a robust effort at Nvidia to make sure that there was no leakage”
The main idea
Treasury Secretary Bessent says his department and others backed restricting Megaspeed exports for months, but Commerce Department has blocked the move.
