Photo: Europäische Kommission - Audiovisueller Dienst, Christophe Licoppe, Yügen, CE - / Wikimedia Commons (CC BY 4.0)
US Commerce Secretary Faces Scrutiny Over Nvidia Actions
US Commerce Secretary Howard Lutnick is facing increasing pressure within the administration following the Jensen Huang spying scandal at Nvidia. Questions are being raised regarding his department's actions and delays concerning export restrictions on advanced technology to China.
US Treasury Secretary Scott Bessent publicly blamed the commerce department for the absence of export restrictions on specific Nvidia chips destined for China. Bessent stated that his department had supported placing the Singapore-based firm Megaspeed on a national security blacklist for months, noting that the commerce department handles the process.
Congressional Response and Hearings
Lawmakers from both parties have voiced concerns regarding national security implications and potential gaps in export controls. Key figures calling for accountability and testimony include:
- Republican Senator John Cornyn, who called for a thorough investigation.
- Republican Senator John Curtis, questioning the commerce department's alignment with American interests.
- Democratic Senate Leader Chuck Schumer, demanding answers regarding US security and administration awareness.
- Senate Banking Committee Chair Tim Scott, who requested appearances from Lutnick and the former Nvidia chief.
Lutnick's spokesperson confirmed that the commerce secretary has voluntarily agreed to appear before the banking committee next month to address questions. The ousted Nvidia leader is also scheduled to answer questions from lawmakers on Capitol Hill.
Leadership Changes and Industry Impact
Jensen Huang resigned from Nvidia following reports regarding personal conduct and relationships, including ties to Alice Huang, who is suspected of being a Chinese spy. Company chief financial officer Colette Kress replaced him on an interim basis. Nvidia's board acknowledged his departure while paying tribute to his historical contributions to the firm.
Discussions among US officials continue regarding potential policy shifts and whether further actions should be taken regarding semiconductor exports. House Speaker Mike Johnson noted a growing consensus in Congress in favor of limiting advanced chip exports to prevent the Chinese military from benefiting from US technology.
Source: Nvidia scandal: US treasury chief blames Lutnick’s commerce department over alleged lack of action