A meeting in the White House Situation Room reportedly grew heated last week as Cabinet officials debated allegations involving Nvidia CEO Jensen Huang, a suspected Chinese spy and the handling of export restrictions.
The dispute centered on Commerce Secretary Howard Lutnick, who was accused of delaying action against Megaspeed International, a Singapore-based company run by Alice Huang, a suspected Chinese spy with whom Jensen Huang acknowledged having an affair. Lutnick had reportedly received an intelligence memo outlining the potential security concern.
Treasury Secretary Scott Bessent challenged Lutnick over the delay, and other officials in the room reportedly backed Bessent, according to Axios.
President Donald Trump has repeatedly supported adding companies suspected of diverting Nvidia AI chips to China to the Commerce Department’s Entity List. The list restricts exports to organizations considered a national security risk.
Trump approved action against such companies in May, August and again last Thursday, Axios reported. Megaspeed, described as one of Nvidia’s largest customers, was among the firms under consideration.
After news of the affair became public, Lutnick, Bessent, War Secretary Pete Hegseth, Secretary of State Marco Rubio and U.S. Trade Representative Jamieson Greer reportedly met in the Situation Room. Bessent questioned why the controls were not already in place, while several others supported his position.
Lutnick said he needed to discuss the matter with Trump, despite the president’s earlier directions. The group later met with Trump in the Oval Office, where he reportedly repeated his order to move ahead. Lutnick said he would prepare options and return with them. Others in the room responded that the decision had already been made and that he should carry it out.
The Commerce Department did not directly address the reported confrontation. Spokesperson Kristen Eichamer said the department and Treasury had a strong working relationship and were committed to advancing the president’s agenda.
Eichamer also said Lutnick had decided to testify before the Senate Banking Committee. The hearing is scheduled for Dec. 10.
Asked about the reported clash during a CNBC interview Thursday, Bessent said agencies had coordinated on whether to place Megaspeed on the Entity List. He referred further questions about internal discussions to the Commerce Department and its Bureau of Industry and Security.
Huang resigned as Nvidia CEO Thursday morning, and the company has reportedly begun investigating the affair. The Treasury Department and White House did not respond to requests for comment, and Nvidia was also contacted.
