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Bessent Confronts Lutnick Over China Inaction

November 12, 2026

2 min read

Key Takeaways

Treasury Secretary Scott Bessent confronted Commerce Secretary Howard Lutnick.
Concerns center on Nvidia customer Megaspeed and national security.
Megaspeed accused of illegally diverting US chips to China.
Lutnick's actions under scrutiny following revelations of Nvidia CEO's affair.

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Strategic Implications

This confrontation may indicate growing tensions within the administration over handling national security concerns related to China. The Commerce Department's inaction on Megaspeed suggests a potential rift between departments on trade and security policies, which could have implications for US-China relations and the tech industry.

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What Happened

Treasury Secretary Presses Commerce Secretary On National Security Concerns

Treasury Secretary Scott Bessent has confronted Commerce Secretary Howard Lutnick over the failure to place Nvidia customer Megaspeed on a list of companies posing national security concerns. The move comes after revelations about Nvidia CEO Jensen Huang’s affair with a suspected Chinese spy and Megaspeed’s alleged illegal diversion of US chips to China. The Commerce Department’s handling of the situation is under scrutiny, with sources indicating Lutnick has been undoing efforts to hold Megaspeed accountable due to concerns about escalating the trade war with China. This development was first reported by Axios.

Source | Originally Published: November 11, 2026

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