Two top Trump Cabinet officials go to war over China spy scandal amid explosive accusations: report
A White House Situation Room meeting erupted into a heated confrontation between Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick last week over alleged delays in restricting a company linked to a suspected Chinese spy with whom former Nvidia CEO Jensen Huang had an affair.
The confrontation reportedly occurred after news broke that Huang had admitted to having an affair with Alice Huang, an executive at Megaspeed International and a suspected Chinese spy. Bessent confronted Lutnick about why export controls against Megaspeed had not been implemented despite receiving intelligence about the potential threat.
Trump has repeatedly called for placing companies suspected of supplying China with Nvidia's advanced AI chips on the Entity List, a Commerce Department export-control list for entities deemed to pose national security risks. The president approved taking action against such companies in May, August, and most recently last Thursday.
Repeated Presidential Orders
During the Situation Room meeting, which also included Secretary of War Pete Hegseth, Secretary of State Marco Rubio, and U.S. Trade Representative Jamieson Greer, Lutnick reportedly said he would need to discuss the matter with Trump despite the clear presidential directives.
The group later met with Trump in the Oval Office, where the president reiterated his order, saying, "Let's get it done." Even then, Lutnick reportedly responded, "I'll develop some options and come back," prompting others in the room to insist that Trump's decision was final and that Lutnick must "go f---ing execute."
Aftermath and Investigations
A Commerce Department spokesperson declined to directly address the reported confrontation, stating only that the departments have a "great working relationship" and are committed to advancing Trump's agenda. The spokesperson added that Lutnick has agreed to appear before the Senate Banking Committee on Dec. 10 to answer questions.
The Department of Commerce and the Department of the Treasury have a great working relationship and are committed to advancing President Trump's agenda.
Bessent, when asked about the reported blowout on CNBC's "Squawk Box," acknowledged coordination between agencies about putting Megaspeed on the Entity List but referred further questions to the Commerce Department and Bureau of Industry and Security.
Meanwhile, Jensen Huang resigned as Nvidia CEO Thursday morning, and the company has reportedly opened an investigation into the affair. The Treasury Department and White House did not return requests for comment.
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