Published November 13, 2026 · By
Treasury Secretary Scott Bessent said Friday that his department and three other agencies had wanted Megaspeed, a Singapore-based buyer of Nvidia chips, placed on a U.S. export blacklist for months, but that the Commerce Department controls that decision. The remarks, made in a CNBC interview on November 13, were described by the Associated Press as an unusually public rebuke of one Cabinet department by another.
The comments come one day after Jensen Huang resigned as Nvidia's chief executive and as Commerce Secretary Howard Lutnick faces growing questions from lawmakers in both parties about how chip sales tied to China were handled.
What Scott Bessent Said About Megaspeed
Speaking on CNBC, Scott Bessent said Treasury, the Pentagon, the State Department and the Office of the U.S. Trade Representative had favored adding Megaspeed to the Commerce Department's Entity List "for months." He then pointed to Commerce, saying the department "has the pen" and that questions about its internal processes should go to Commerce, according to AP and AFP.
Scott Bessent also said he was frustrated, noting that President Donald Trump had made clear China should not receive any Nvidia chips more advanced than the H100, AP reported. He told CNBC that any leakage of chips hurts U.S. companies and gives China an advantage in the race to develop artificial intelligence, according to AFP.
Questions for Nvidia, too
The Treasury chief did not direct his criticism only at Commerce. According to AFP, he said the central question should be whether Nvidia knew its customer and whether the company made a serious effort to prevent chips from slipping into China. He said Nvidia may have sold to what appeared to be pass-through shell companies and that anyone responsible should be held accountable.
AFP also reported that Scott Bessent said media coverage had focused too heavily on Huang's personal life rather than on the export issue itself.
Why Treasury has a stake
Scott Bessent has led the Treasury Department since January 2025. Treasury does not write export-control rules, but it runs economic sanctions through its Office of Foreign Assets Control and chairs the interagency committee that reviews foreign investment for national security risks. That gives Scott Bessent a seat in debates over technology flowing to China, even though the Entity List itself belongs to Commerce.
Why Megaspeed Matters
Megaspeed International is based in Singapore and promotes its partnership with Nvidia on its website, AP reported. The company has been accused of routing advanced Nvidia chips bought for Southeast Asian data centers into China, which would get around U.S. export controls. AFP reported that Megaspeed has traded more than $4 billion in Nvidia chips over two years.
Megaspeed has denied wrongdoing. In December it said there was "no evidence" of illegal exports, and on Thursday it said it takes export compliance seriously and wants to work with the U.S. government, according to AP. China's government has dismissed reports of spying as groundless.
The link to Jensen Huang's exit
Huang stepped down on Thursday after reports of an affair with Alice Huang, a former Megaspeed executive who is not related to him. The New York Times reported that U.S. intelligence officials suspect she has ties to Chinese intelligence. Nvidia's board has said it will investigate. Chief Financial Officer Colette Kress is serving as interim CEO.
How the Entity List works
The Entity List, run by Commerce's Bureau of Industry and Security, names foreign companies and people considered a risk to U.S. national security or foreign policy. Firms on the list need special licenses to receive most U.S. technology. CBS News reported that Commerce has not added a company to the list since October 2025.
How the White House Responded to Scott Bessent
The Commerce Department did not immediately respond to AP's request for comment on Friday. On Thursday, a White House official said President Trump "maintains complete confidence" in Lutnick, according to Axios and CNN.
At the same time, CNN reported Friday that some Trump advisers have privately discussed the possibility of removing Lutnick, and that the president has received calls from people inside and outside the administration raising concerns. CNN's sources said it is unclear what Trump will decide, given his long friendship with Lutnick. No decision has been announced.
The New York Times reported Thursday that Lutnick had resisted tighter limits on sales of Nvidia's more advanced chips to China. Lutnick has not publicly responded to the remarks from Scott Bessent.
What Lawmakers in Both Parties Are Doing
Senate Banking Committee Chairman Tim Scott, a South Carolina Republican, has asked both Huang and Lutnick to testify, with a hearing for Huang requested for December 3. As Meridian Pioneer reported, Howard Lutnick agreed to testify before the panel. AFP reported that three House committee chairs also asked Huang to attend a closed-door briefing on November 18.
On the Democratic side, Sens. Elizabeth Warren of Massachusetts and Chris Coons of Delaware sent a letter on November 11 directing Lutnick, Secretary of State Marco Rubio and White House aide Stephen Miller to preserve all records related to Nvidia. Lawmakers from both parties have also introduced bills to tighten chip export controls.
Republican and Democratic framing
Republicans leading the inquiries have framed the issue mainly as a national security matter tied to China. Democrats have also focused on national security while seeking records on contacts between Nvidia and administration officials. The briefings and hearings requested so far will be the first formal setting where lawmakers can question officials about the issues Scott Bessent described.
Scott Bessent Remarks: Key Facts at a Glance
- Who spoke: Treasury Secretary Scott Bessent, on CNBC, Friday, November 13.
- What he said: Treasury, Defense, State and USTR backed blacklisting Megaspeed for months; Commerce makes the call.
- Megaspeed: Singapore-based Nvidia customer, reported to have traded more than $4 billion in chips over two years; denies wrongdoing.
- White House: Says Trump has complete confidence in Lutnick; CNN reports advisers discussed his possible removal.
- Next dates: Requested House briefing November 18; requested Senate Banking hearing December 3.
What It Means for You
For most households, this dispute will not change a paycheck or a bill next week. But it touches several things that do affect personal finances. Here is what to watch, based on the reporting above. The points below are our own analysis.
Your retirement and index funds
Nvidia is one of the largest companies in the S&P 500, so it makes up a meaningful share of many 401(k) plans, IRAs and index funds. The stock swung sharply after Huang's exit. New export restrictions, investigations or leadership changes could add to volatility. Investors with a long time horizon generally benefit from checking their overall mix rather than reacting to one day's headlines.
Technology prices and jobs
Tighter export rules could limit some sales abroad for U.S. chipmakers, while supporters argue they protect American firms over the long run. Either way, policy decisions in this area can influence hiring in the tech sector and, over time, the cost of devices and cloud services.
Government accountability
Requested briefings and hearings in late November and early December will be public tests of how Commerce, Treasury and Nvidia handled the issue. Watching those sessions, or reading summaries from nonpartisan sources, is a practical way to follow the facts as they emerge.
If Commerce does act on Megaspeed, the move would show whether the concerns raised by Scott Bessent lead to concrete policy changes. If it does not, the letters lawmakers have already sent indicate the question will come up at the upcoming hearings.
This article is for information only and is not financial advice.
What Comes Next
Key questions remain open: whether Commerce adds Megaspeed to the Entity List, whether President Trump keeps Lutnick in his post, and what Huang and Lutnick tell lawmakers. The public comments from Scott Bessent show that the debate over chip exports is now playing out inside the Cabinet as well as in Congress. For background on the market reaction, see our report on the Nvidia stock drop.
Sources: Associated Press (via KIRO 7), AFP (via Yahoo News), CNN, Axios, The New York Times (as cited by AP), CBS News (as cited by ANI), U.S. Senate Banking Committee, Bureau of Industry and Security.
