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Summary of article:
U.S. Treasury Secretary Besant interrogated Commerce Secretary Lutnick face-to-face and demanded an explanation as to why MegaSpeed, an Nvidia customer involved in moving chips to China, was not included in the entity list, raising concerns about the Commerce Department’s regulatory attitude.
People familiar with the matter told US news website Axios that US Treasury Secretary Besant confronted Commerce Secretary Lutnick in the White House Situation Room, dissatisfied that the Commerce Department did not do so.Huida (Nvidia) customer MegaSpeed included in list of companies with national security concerns.
HUIDA CEOJen-Hsun Huang It was revealed that he was having an extramarital affair with MegaSpeed employee Alice Huang, who is suspected of being involved in spying for China. The Commerce Department is responsible for regulating the export of sensitive US technology. Following the revelation of the above incidents, Howard Lutnick’s actions or inactions have come under increasing scrutiny.
According to reports, on Thursday after the US midterm elections, Scott Besant asked Lutnick in a White House Situation Room meeting why MegaSpeed had not yet been added to the Commerce Department’s Entity List. Lutnick responded that he would “learn about it.”
Sources told Axios that Lutnick has spent the last year “pushing back” on efforts by other government officials to hold MegaSpeed accountable. MegaSpeed is accused of illegally transferring US chips to China, and Lutnick worries that holding the company accountable will escalate the US-China trade war.
According to reports, US Commerce Under Secretary Jeff Kessler also received several warnings about Megaspeed in sub-level meetings. But Kessler said: “This matter should be decided by the Secretary (Lutnick).”
Summary FAQ
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Besant primarily asked Lutnick why the Commerce Department had not included Megaspeed in the entity list. They believe that the company is involved in transferring chips to China and should be included in the national security control list as soon as possible.
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MegaSpeed was accused of illegally transferring US chips to China, thus involving the leakage of sensitive technology and national security concerns, the report reported. If the Commerce Ministry does not get it under control, the outside world is worried that the control gap will continue to widen.
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Sources said Lutnick has repeatedly overturned efforts by other executives to push MegaSpeed last year. One reason for this is that they were worried that such a move would escalate the US-China trade war, which also delayed related management.
