US export controls: Bessent criticises Commerce delay on Nvidia chip limits to China

US Treasury Secretary Scott Bessent said on Friday that delays at the Commerce Department held up tougher export curbs on certain Nvidia chips sent to China. Bessent told CNBC that several agencies backed adding Singapore-based Megaspeed to an export control list. Bessent said Commerce led the process, despite wider support for action.

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Bessent said the Treasury Department worked with the departments of State and Defence, and the US Trade Representative. Bessent said the group supported the move for months. "I am frustrated when President Trump made it very clear China should not receive any Nvidia chips above H100s,\" Bessent said. \"Commerce has the pen, and you will have to ask them about their internal processes.\"

Commerce Department export controls on Nvidia chips to China

Bessent’s remarks amounted to a rare public criticism of the Commerce Department. That department runs US controls on exports of sensitive, high-tech products. The Commerce Department did not immediately respond to messages seeking comment. The dispute drew attention because it involved limits on advanced chips and the pace of enforcement.

The comments came as questions grew around Chinese access to Nvidia chips through intermediaries. Chinese firms have obtained Nvidia chips through companies like Megaspeed. The New York Times reported on Thursday that Commerce Secretary Howard Lutnick resisted tighter limits. The report said the issue involved sales of Nvidia’s more advanced chips to China.

Megaspeed export controls and Nvidia ties under scrutiny

Nvidia’s relationship with Singapore-based Megaspeed International also drew attention. Megaspeed highlights the partnership on its website. The same links featured in events around the resignation of Nvidia CEO Jensen Huang. Lutnick also faced rising scrutiny due to a reportedly close relationship with Huang, according to The Times.

Huang resigned on Thursday after reports of an affair with former Megaspeed executive Alice Huang. The Times said US intelligence suspected Alice Huang to be a Chinese spy. Separately, Megaspeed faced accusations last year of illegal shipments of advanced Nvidia chips into China. In December, Megaspeed said there was no evidence of such exports.

On Thursday, Megaspeed defended its position in a statement. The company said it followed US rules and planned to co-operate with officials. \"it takes its obligation to comply with American export control laws extremely seriously - and that it was committed to working constructively and transparently with the US government.\"

The episode linked export enforcement, corporate ties, and senior-level scrutiny in Washington. Bessent said agencies agreed for months on listing Megaspeed, while Commerce controlled the timeline. Reports about Lutnick and Huang added political pressure around chip controls. Commerce gave no immediate response, while Megaspeed repeated its commitment to US export laws.

With inputs from PTI