Nvidia affair: suspected Chinese espionage sparks clash in Trump administration

In depth

A sharp clash has erupted in the Trump administration between Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick, over the suspicion that Megaspeed, a customer of Nvidia, is passing advanced chips to China. Bessent demands that the company be declared a national security threat, and the demand intensified after Nvidia's CEO admitted to an affair with a female employee of the company suspected of Chinese espionage.

The Treasury Secretary places responsibility on Howard Lutnick and notes that the administration already has the necessary powers. According to him, four agencies supported adding Megaspeed to the "entity list," but the authority lies with the Commerce Department. In Congress, lawmakers are demanding that Lutnick testify and preserve documents.

The suspicions of smuggling Nvidia chips to China and Megaspeed's connection to Alice Huang remain at the center of the dispute between the two secretaries, with Bessent calling for the existing powers to be implemented without delay.