Bessent criticizes Commerce Department over Nvidia export control delays
U.S. Treasury Secretary Scott Bessent has publicly criticized Commerce Secretary Howard Lutnick's department for delaying export controls related to Nvidia, specifically regarding Singapore-based Megaspeed.
The dispute centers on the Commerce Department's failure to add Singapore-based Megaspeed to the Entity List, despite multiple U.S. agencies supporting the move due to suspicions that Megaspeed facilitated transfers of advanced Nvidia AI chips to China. The Commerce Department has denied reported conversations between Bessent and Lutnick regarding this issue.
Internal Tensions
Bessent's public criticism suggests growing internal tensions over the implementation of export restrictions. The ongoing disagreement highlights contested responsibility for tighter controls, with the Treasury Secretary taking a more aggressive stance toward China-related technology transfers.
The delay in adding Megaspeed to the Entity List appears consistent with internal U.S. government disagreements.
Market Impact
Market pricing indicates increased speculation about Lutnick's job security as Secretary of Commerce. The situation could escalate if additional criticisms emerge from key figures like Bessent or White House Deputy Chief of Staff Stephen Miller. Market participants will closely monitor any official announcements from President Trump or the Commerce Department regarding potential leadership changes or policy shifts.
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