# Lutnick under fire over China chip sales

> Commerce Secretary Howard Lutnick faces bipartisan scrutiny for blocking efforts to stop advanced Nvidia chips reaching China, even as other cabinet members pushed for action.
- Title: Lutnick under fire over China chip sales · Fortune | Shortify
- Summary: Commerce Secretary Howard Lutnick faces bipartisan scrutiny for blocking efforts to stop advanced Nvidia chips reaching China, even as other cabinet members…
- Keywords: howard lutnick, commerce department, nvidia chips, china export controls, megaspeed, national security, jensen huang, alice huang, cantor fitzgerald, rare earths, tether, Fortune
- Source: Fortune — https://fortune.com/2026/11/12/jensen-huang-howard-lutnick-national-security-commerce-department
- Author: Jeffrey Sonnenfeld
- Read time: 3 min
- Topics: howard lutnick, commerce department, nvidia chips, china export controls, megaspeed, national security, jensen huang, alice huang, cantor fitzgerald, rare earths, tether
## Huang resigns amid spy scandal
Nvidia founder and CEO Jensen Huang resigned Thursday after reports of affairs with a direct report and with Alice Huang, a suspected Chinese spy. National security questions remain.
## Megaspeed funneled chips to China
Megaspeed, the Nvidia customer where Alice Huang was an executive, was suspected of funneling advanced chips to China for years. The U.S. government took little action.
## Scrutiny shifts to Commerce Secretary
As reporting accumulates, all roads lead to Commerce Secretary Howard Lutnick, who by multiple accounts blocked action over objections of fellow cabinet members and congressional leaders.
## Commerce began investigating in 2024
The Department of Commerce's agents began investigating Megaspeed, the Singapore firm that bought billions of dollars of Nvidia chips and is suspected of diverting them to China, in 2024.
## Investigation paused in 2025
In 2025, Nvidia's general counsel emailed Commerce agents directly, citing permission from Lutnick's export-control chief Jeffrey Kessler. Commerce soon paused its work on the investigation.
## Tom Cotton urges investigation
Senate Intelligence Committee Chair Tom Cotton wrote to Lutnick directly, urging Commerce to investigate Megaspeed more carefully. Lutnick's Commerce Department remained unmoved.
## Megaspeed never blacklisted
Megaspeed never landed on the entity list, the Commerce Department blacklist that cuts suspect firms off from American technology, despite other agencies repeatedly agreeing to propose adding it.
## State, Treasury, Pentagon pushed hard
The State Department, Treasury Department, Energy Department and the Pentagon were pushing particularly aggressively to add Megaspeed to the entity list. Lutnick's Commerce Department refused.
## Classified memo on Alice Huang
This spring, Secretary of State Marco Rubio oversaw drafting a highly classified assessment built on electronic surveillance of Alice Huang. China's Ministry of State Security had recruited her to gather intelligence.
## Huang added to China trip last minute
The memo went to senior officials before President Trump's May trip to China. Lutnick received it. Jensen Huang was originally left off the delegation before being added at an Alaska refueling stop.
## Trump approved crackdowns three times
President Trump approved a crackdown on chip diversion to China in May, in August, and on November fifth. Lutnick and his deputies resisted carrying out each order.

> One administration official has repeatedly stood in the way: Commerce Secretary Howard Lutnick.
## Cabinet colleagues turn against him
Lutnick's chief antagonists are his own colleagues: Treasury Secretary Scott Bessent, Defense Secretary Pete Hegseth, Trade Representative Jamieson Greer, National Security Adviser Marco Rubio and Director of National Intelligence Jay Clayton.
## Republicans demand explanation
Republican Sen. John Kennedy says Lutnick must explain himself in front of God and country. House chairs John Moolenaar and Brian Mast have made their unhappiness vivid.

> in front of God and country
## Democrats target Lutnick in January
After last week's midterms, Democrats take committee gavels in January with detractors making clear Lutnick is one of their top targets for reasons extending far beyond his role in chip sales to China.
## Rare earths deal raises questions
In January, Commerce announced a tentative one point six billion dollar deal giving the government a roughly ten percent stake in USA Rare Earth.
## Crypto and Epstein conflicts loom
Cantor has been custodian of Tether reserves since 2021, with a stake that swelled from about six hundred million to an estimated ten billion dollars. Lutnick also faces questions over longtime ties to Jeffrey Epstein.
## Key takeaway

Commerce Secretary Howard Lutnick is under escalating bipartisan investigation for allegedly blocking efforts to prevent Nvidia chips reaching China, with multiple cabinet members and congressional Republicans demanding answers.