Treasury Secretary Scott Bessent attributed the delay in placing the Singaporean tech firm Megaspeed on the U.S. trade blacklist to the Department of Commerce. Speaking to CNBC on Friday, Bessent indicated that significant internal disagreement existed within the administration regarding the national security implications of the company.
Bessent noted that the Treasury Department, the Department of War, the U.S. Trade Representative, and the State Department had all supported adding Megaspeed to the entity list for several months. However, he emphasized that the Bureau of Industry and Security within Commerce held the final say on the matter. He stated that Commerce had the pen and suggested that questions about the internal decision-making process should be directed to them.
These remarks come following reports of friction between Bessent and Commerce Secretary Howard Lutnick. According to an Axios report from earlier this week, Bessent raised the issue with Lutnick regarding the company's absence from the list earlier in the month. Lutnick reportedly agreed to review the situation. The report also cited anonymous sources who said Lutnick had been working to reverse previous efforts to scrutinize Megaspeed over the past year, citing concerns that stricter measures could affect the broader trade war with China.
Megaspeed gained significant public attention this month due to a personal scandal involving former Nvidia CEO Jensen Huang. Huang was reported to have had a relationship with Alice Huang, a former executive at Megaspeed. U.S. officials had previously concluded that Alice Huang was a Chinese spy, which intensified the debate over the company's ties to Beijing.
The New York Times subsequently reported that Jensen Huang had a second affair with a direct report. Following these revelations, the former CEO stepped down from his position at Nvidia on Thursday morning. The sequence of events has prompted calls from lawmakers for both Huang and Lutnick to provide testimony before Congress.
Senate Banking Committee Chair Tim Scott sent letters to both Lutnick and Huang on Thursday, requesting their appearances before the committee early next month. Scott highlighted the critical role of the Department of Commerce in issuing and enforcing export control regulations. He wrote that their testimony would be essential for the committee to properly oversee these efforts.
A spokesperson for the Commerce Department, Kristen Eichamer, confirmed in a statement to The Hill on Friday that Lutnick had proactively agreed to appear voluntarily before the Senate Banking Committee. This development marks a key step in the congressional oversight process as officials seek to clarify the administration's stance on export controls and national security.
The situation underscores the complex balance between economic interests and security concerns within the current administration. While multiple departments favored tighter controls on Megaspeed, the final decision rested with Commerce, leading to the current public scrutiny of the process.
As the hearings approach, attention remains on how the Department of Commerce justified its internal processes and whether the personal connections of former executives influenced the broader policy decisions regarding Singaporean firms in the U.S. market.
