IMPLICATOR
Commerce Secretary Howard Lutnick has held up chip export curbs President Trump approved three times this year, Axios reported Wednesday from six high-level sources. Megaspeed, a Singapore company U.S. authorities suspect of helping Chinese customers obtain restricted Nvidia chips, is still not on the Commerce Department’s Entity List.
What Changed
- President Trump approved action against suspected Nvidia chip diversion in May, August and on Nov. 5, and Commerce Secretary Howard Lutnick has held it up each time, according to six high-level sources.
- At a Nov. 5 Situation Room meeting, Treasury Secretary Scott Bessent asked why Megaspeed was not on the Entity List; Commerce says that conversation never happened.
- Commerce has not added a single company to its Entity List in more than a year, and Megaspeed is still not on it.
- Republican lawmakers including Sen. John Kennedy and Rep. Bill Huizenga want Lutnick to explain the chip sales, while the White House says Trump has complete confidence in him.
AI-generated summary, reviewed by an editor. More on our AI guidelines.
The Nov. 5 meeting
At the Nov. 5 Situation Room meeting, Treasury Secretary Scott Bessent confronted Lutnick alongside Defense Secretary Pete Hegseth, U.S. Trade Representative Jamieson Greer and Secretary of State Marco Rubio.
“How come Megaspeed isn't on the entities list?” Bessent asked.
“I don't know. I'll look into it,” Lutnick replied. Lutnick appeared to agree, then muttered under his breath, “I need to check with the president.”
“Great. Why don't we do it today?” one person in the room responded.
Around 5 p.m., the group went to the Oval Office. Trump called tech adviser Elon Musk, who supported imposing the controls. Lutnick warned the controls “will start a trade war with China.”
“Let's get it done,” Trump said.
Outside the Oval Office, Lutnick said, “I'll develop some options and come back.”
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“Everyone was like: 'No, no, the decision's been made. Go fucking execute,'” one person briefed on the discussions said. “Well, it still hasn't happened.”
Trump had already approved action against suspected Nvidia chip diversion in May and August, before approving it again on Nov. 5. Lutnick and Commerce Undersecretary Jeffrey Kessler resisted pressure to proceed.
Kessler had also received repeated warnings about Megaspeed in deputy-level meetings. “That's a decision for the secretary,” he said.
“He's stalling it out,” one official said of Lutnick.
Megaspeed and the blacklist
Commerce has not added a single company to its Entity List in more than a year, a review of the Federal Register shows. Commerce says it uses the blacklist every day against bad actors. A listing would require American suppliers to obtain licenses before shipping sensitive products to Megaspeed. Commerce leads the committee with State, Defense and Energy, consulting Treasury when appropriate.
Singapore-based Megaspeed’s assets rose to about $3 billion in 2024 from $33 million in 2023. Speedmatrix, a Malaysian company reportedly linked to Megaspeed, bought at least $4.8 billion of advanced AI equipment, including systems containing Nvidia chips, between June 2024 and February 2026, trade records show.
Alice Huang, a Megaspeed executive whom U.S. intelligence suspects of being a Chinese intelligence asset, had an affair with Nvidia chief executive Jensen Huang, who acknowledged it; China denies she is a spy.
Megaspeed denies wrongdoing and calls itself a “compliant and legal company.” Nvidia says it placed Megaspeed on its own block list in June 2025, prohibiting further sales or shipments.
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Commerce’s response
The meeting account rests on six anonymous high-level sources.
“This is false. Secretary Bessent and Secretary Lutnick had no such conversation,” Commerce spokesperson Kristen Eichamer said. The denial did not address the three approvals or the Oval Office meeting. The department would not immediately comment on the other allegations.
On Nov. 5, the day Trump said “Let's get it done,” Commerce pushed back to Jan. 10, 2027 a frozen rule that would have extended Entity List restrictions to any company at least 50% owned by a listed firm. The October 2025 trade truce froze it.
Congressional pressure
Rep. Bill Huizenga, a Michigan Republican, wants Lutnick to testify before Congress. He said the Bureau of Industry and Security has “been less responsive than they should be” to lawmakers’ briefing requests.
A White House official said Trump maintains “complete confidence” in Lutnick.
“The obvious question is why did he choose to sell advanced chips?” Sen. John Kennedy, a Louisiana Republican, said in a Wednesday interview.
“Secretary Lutnick needs to answer that in front of God and country.”
Frequently Asked Questions
What did Trump approve, and when?
Trump approved action against suspected diversion of Nvidia chips to China at least three times this year: in May, in August and on Nov. 5, when he told officials in the Oval Office, "Let's get it done." The action has still not been carried out.
Why has Lutnick held back?
In the Oval Office, Lutnick warned that the controls "will start a trade war with China." After Trump decided, he said he would "develop some options and come back." Undersecretary Jeffrey Kessler deferred to him, saying, "That's a decision for the secretary."
What is Megaspeed?
Megaspeed is a Singapore company that U.S. authorities suspect of helping Chinese customers obtain restricted Nvidia chips. Its assets rose to about $3 billion in 2024 from $33 million a year earlier. The company denies wrongdoing, and Nvidia says it put Megaspeed on its own block list in June 2025.
What would an Entity List listing do?
A listing would require American suppliers to obtain licenses before shipping sensitive products to Megaspeed. Commerce leads the interagency committee that decides listings and has not added a single company in more than a year.
How has Commerce responded?
Spokesperson Kristen Eichamer said a Bessent-Lutnick conversation about Megaspeed never took place. The denial did not address the three approvals or the Oval Office meeting, and the department would not immediately comment on the other allegations.
AI-generated summary, reviewed by an editor. More on our AI guidelines.
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Marcus Schuler
Editor-in-Chief and founder of Implicator.ai. Former ARD correspondent and senior broadcast journalist with 10+ years covering tech. Writes daily briefings on policy and market developments. Based in San Francisco. E-mail: editor@implicator.ai
