Washington wanted to blacklist Megaspeed, Commerce dragged its feet
By the AFREEQUE newsroom, based on Business Day (South Africa)
US Treasury Secretary Scott Bessent says four federal agencies wanted to put Megaspeed, the Singaporean company at the centre of the Nvidia affair, on the trade blacklist, but Howard Lutnick’s Commerce Department dragged its feet. Republican and Democratic lawmakers are criticising the handling of chip export controls to China, according to CNBC and Business Day.
US Treasury Secretary Scott Bessent said on Friday 13 November that four US government agencies had for several months supported putting Megaspeed, the Singaporean company at the centre of the Nvidia scandal, on Washington’s trade blacklist, but that the Commerce Department had opposed it, Business Day reports. He cited the Treasury, the Pentagon, the State Department and the US Trade Representative, adding that Commerce had final decision-making power.
The Commerce Department’s Entity List targets groups linked to China that US authorities consider to pose national security risks. The department had not immediately responded to a request for comment, according to Business Day.
Republican Senator John Curtis said reports of a slowdown in export controls by Commerce Secretary Howard Lutnick raised questions about the department’s actions. Democratic Senator Richard Blumenthal, for his part, called for Lutnick to leave and accused him of putting personal interest ahead of the public interest, according to Business Day.
The controversy comes as Jensen Huang’s resignation as Nvidia chief executive sent the US chipmaker’s shares down 12% on Friday, an episode already reported by Jensen Huang’s resignation. Reuters had also reported on Thursday that White House officials were considering pushing Howard Lutnick out as part of the espionage scandal surrounding Nvidia.
