Scoop: Lutnick stalled curbing Nvidia chip sales to China — again — after Oval Office showdown
Trump authorized a fresh crackdown on suspected diversions of Nvidia’s advanced AI chips to China, after a high-stakes Oval Office session where all but Commerce Secretary Howard Lutnick pressed for action. A tension-filled push-pull emerged as Lutnick, warned by aides, signaled hesitation while colleagues urged immediate export controls, aided by Elon Musk’s support. The president ultimately said “Let’s get it done,” but Lutnick floated new delay options, keeping the measure in limbo and highlighting a broader struggle to balance security with economic interests. The episode underscores ongoing congressional and executive pressure over tech leakage, with implications for China policy and U.S. tech control enforcement going forward.
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Lutnick resisted export controls on Nvidia’s chips even as top officials from Bessent, Greer, Hegseth, and Rubio pressed for action during a Situation Room meeting. The clash occurred amid wider concerns about a spy scandal surrounding Megaspeed and a Chinese agent tied to Nvidia’s ecosystem.
Trump consulted Elon Musk and, after deliberations, appeared inclined to proceed with the controls, with Musk backing the case to curb potential China access and protect national security interests. Lutnick warned that the move could trigger a trade war with China, framing the debate in economic terms.
By late afternoon, the president signaled readiness to act, but Lutnick proposed developing options and delaying the decision, prompting insiders to recall prior instances where action was promised but not executed.
The narrative cites multiple prior approvals (May, August, and Nov. 5) for action against suspected diversions of Nvidia chips, contrasted with Lutnick and undersecretary Kessler’s repeated resistance to move forward. A May memo reportedly warned about Jensen Huang’s ties to a Megaspeed employee suspected of espionage.
Context notes that last year the administration loosened export controls on Nvidia’s H200 to China, a move Nvidia lobbied for, while the current standoff illustrates ongoing tensions between national security objectives and economic/industrial policy.
The episode amplifies questions about how the administration will address alleged tech diversions and the broader security implications for U.S.–China tech competition, with the outcome remaining uncertain as the situation develops.