Scoop: Inside Bessent's Situation Room confrontation with Lutnick over China chip security
Summary
Axios reports that Treasury Secretary Scott Bessent challenged Commerce Secretary Howard Lutnick at a White House meeting about why chip company Megaspeed had not been added to the Commerce Department’s Entity List, which restricts exports to listed organizations. Sources quoted by Axios say officials have accused Megaspeed of diverting U.S. chips to China and say Lutnick resisted action; these are reported allegations, not established findings in the article.Key Facts
- The reported confrontation took place at a White House Situation Room meeting on Thursday after the midterm elections.
- Axios says Bessent asked Lutnick why Megaspeed was not on the Entity List.
- According to sources briefed on the meeting, Lutnick said he would look into the matter.
- Sources told Axios that officials had pressed Lutnick and his advisers to act against Megaspeed since fall 2025.
- The article says Megaspeed has been accused of illegally diverting U.S. chips to China.
- The New York Times reported that Commerce Undersecretary Jeff Kessler stopped an investigation into Megaspeed after Nvidia intervened.
- The Financial Times reported that the Commerce Department delayed efforts to blacklist Megaspeed despite pressure from several U.S. agencies.
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