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After Huang Renxun resigned as CEO, Commerce Secretary Lutnik came under scrutiny for his close relationship with Huida and suspicions of lax chip control, and faced questions about conflict of interest.
After the breakup with a Chinese female spy, which led to the flow of advanced AI chips into China, Nvidia (Huida also translated as Nvidia) FounderJen-Hsun Huang (Jensen Huang) resigned as CEO on the 12th and was accused of taking Huida all the way.Ministry of Commerce President Howard Lutnick is at the forefront. The New York Times reported that most senior Trump administration officials advocated tightening export controls on Huida’s advanced chips to prevent China from catching up with the United States in the artificial intelligence race. However, Lutnick has been at odds with other Cabinet chiefs over the past year due to his persistent opposition.
Lutnick was the former president of Cantor Fitzgerald, whose business scope included cryptocurrencies and data centers that relied on Huida chips, and was deeply influenced by Commerce Department policies. The company is currently run by Lutnick’s two sons, and has drawn attention over whether there is a conflict of interest.
People within the government and in Congress questioned whether Lutnick was too close to Huang and therefore agreed to help ease chip control measures. Huang Renxun’s resignation shocked the market, and Lutnick faced greater scrutiny over whether he had gone too far to protect Huida’s interests.
The Commerce Department is in charge of technology sales restrictions. As Secretary, Lutnick could single-handedly determine whether China could obtain American technology, including wafer products. Current and former Commerce Ministry officials said that compared to other companies, Huida received markedly different treatment at the Commerce Ministry, and matters related to Huida were given higher priority and handled through specific channels. Lutnick often talks to Huang on the phone and sends text messages. Whenever Huang went to the fifth-floor office of the Ministry of Commerce to meet Lutnick in person, the Ministry of Commerce staff would carefully prepare it.
All matters related to HUIDA are to be handled by Under Secretary Jeff Kessler, who is Lutnick’s chief deputy. Sources said Kessler rarely made any major decisions without Lutnick’s input.
Current and former Commerce Department officials reported that President Trump’s relationship with Jen-Hsun Huang also made Commerce Department officials wary of taking active control measures against Huida Chip for fear of angering Lutnick or the White House.
Treasury Secretary Scott Besant, Secretary of State Marco Rubio and U.S. Trade Representative Jameson Greer all expressed concerns about Huida’s advanced chip sales to China and advocated pushing for tougher sanctions, the sources said. However, Lutnik repeatedly restricted control measures, resulting in slow progress throughout the year.
In October this year, a few weeks before the midterm elections, some senior Trump administration officials were expected to introduce sweeping rules to restrict Chinese companies from acquiring AI computing power in Southeast Asia, as it was a major loophole in US technology export restrictions. Trump approved this proposal. Trump knew that Huida and Huang Jen-hsun would be affected, but most of Trump’s advisers and technology giants Elon Musk and Mark Zuckerberg supported the proposal. Lutnick told his staff that he didn’t understand why it had to be moved forward so quickly. The sanctions rules will not only affect Huida, but other countries as well.
Summary FAQ
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Because the outside world believed that Lutnik had long been friendly to HUIDA and had also imposed many restrictions on chip export controls, the Ministry of Commerce was questioned about being too lax in its handling of HUIDA. Therefore, it was investigated even more after Huang Renxun resigned.
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The company Lutnik once worked for involved cryptocurrencies and data centers that relied on Huida chips and is currently run by his two sons. Therefore, the outside world suspects that he may be influenced by private interests when formulating relevant export controls.
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Treasury Secretary Besant, Secretary of State Rubio, and Trade Representative Greer advocated tightening restrictions on China’s access to advanced chips, but Lutnick repeatedly opposed or delayed the promotion, resulting in slow progress on relevant control measures.
