Nvidia chip dispute divides Trump administration, increases pressure on Howard Lutnick

The decision not to impose restrictions on a company suspected of sending American microchips to China has put U.S. Commerce Secretary Howard Lutnick under pressure. He faces criticism from Trump administration officials and lawmakers from both parties.

The company at the center of the case is Singapore-based Megaspeed International. It is one of the main buyers of Nvidia processors and is suspected of circumventing U.S. export restrictions on China.

Investigators have also examined the role of Alice Huang, a former Megaspeed executive, amid suspicions of possible links to Chinese intelligence services. So far, however, there is no proof that she was an agent for Beijing or that Nvidia chief Jensen Huang passed on classified information.

A CNN investigation describes Lutnick as a key figure in bringing President Donald Trump and Jensen Huang closer together. According to the investigation, their relationship influenced decisions on exports of advanced processors and U.S. policy toward China.

In April 2025, Huang attended a fundraising event for MAGA Inc., where a seat cost $1 million. During the meeting, he tried to persuade Trump not to block sales of H20 processors to China.

The U.S. administration allowed exports to resume in August 2025. At the same time, Nvidia agreed to pay the U.S. government 15% of the revenue from those sales.

According to The Washington Post, Nvidia has also pledged $25 million toward construction of the new White House ballroom. The company confirmed the contribution but denied any link between it and its business interests.

The case has sparked clashes within the administration. CNN reports that Treasury Secretary Scott Bessent demanded an explanation from Lutnick during a White House debate over the failure to place Megaspeed on the list of companies subject to strict restrictions.

According to Bessent, the Treasury Department, State Department, Pentagon and Office of the U.S. Trade Representative had sought restrictive measures for months. The final decision, he said, rested with the Commerce Department.

Following these revelations, calls for Lutnick to leave office have grown. The White House, meanwhile, has said Trump continues to have full confidence in him.

Congress is also seeking answers. Tim Scott, the Republican chair of the Senate Banking Committee, has called for Lutnick and Jensen Huang to testify at a hearing scheduled for December 3.

Democratic Senators Elizabeth Warren and Chris Coons have meanwhile called for the preservation of government documents and communications related to Nvidia, Megaspeed and chip exports.

The investigation aims to establish what U.S. authorities knew about the espionage suspicions, why the requested restrictions were not approved in time and whether Nvidia’s contacts with political leaders influenced the decisions made.

The developments come ahead of Donald Trump’s planned meeting with Chinese President Xi Jinping, at a delicate time for Washington. Exports of advanced microchips remain one of the central issues in the economic and technological rivalry between the two countries.