Howard Lutnick faces bipartisan fire over Nvidia chip exports to China
Commerce Secretary Howard Lutnick is facing criticism from both Democrats and Republicans over the administration's refusal to add Chinese companies to a key US trade blacklist amid concerns about Nvidia's chip exports to China.
Commerce Secretary Howard Lutnick is facing criticism from both Democrats and Republicans over the administration's refusal to add Chinese companies to a key US trade blacklist. Lawmakers are questioning whether the government properly oversaw Nvidia's exports to China, particularly following CEO Jensen Huang's resignation on November 12, 2026.
Huang's exit came after an internal investigation revealed an affair with Alice Huang, a former executive at Megaspeed. US authorities suspect Alice Huang of spying for Beijing, according to Reuters. Megaspeed has purchased more than $4.8 billion in Nvidia AI chips since June 2024 and is under investigation for alleged diversion of those chips to China.
Entity List Controversy
The Entity List is the Commerce Department's trade blacklist that sharply restricts a company's ability to buy sensitive US technology. Critics say Megaspeed and numerous other Chinese firms should already be on that list, with Lutnick accused of resisting their addition despite multiple warnings from officials.
The pushback is notably bipartisan. Democratic Senator Elizabeth Warren and Republican Senator John Kennedy are among the lawmakers leading the criticism.
Lawmakers have called for investigations and are seeking testimony from Lutnick about how he has handled export controls. Critics also argue that Lutnick resisted tightening export controls even though President Trump approved stricter measures multiple times throughout 2026.
What Happens Next
For Nvidia, the immediate challenge is leadership continuity at a moment of maximum scrutiny. The Megaspeed relationship represents substantial business—more than $4.8 billion in purchases since June 2024. If investigators confirm diversion to China, questions will follow about how those sales were vetted.
For the Commerce Department, the stakes are institutional. Bipartisan demands for testimony suggest Congress wants a detailed accounting of why Megaspeed and other firms stayed off the Entity List. The key developments to watch are whether Lutnick testifies, whether Commerce adds these companies to the list, and what investigations conclude about the chips' destinations.
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