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Bessent blames Commerce Department over lack of Nvidia chip export curbs to China

US Treasury Secretary Scott Bessent has blamed the Commerce Department, led by Howard Lutnick, for Washington's failure to restrict exports of certain Nvidia chips to China, according to The Guardian. Lutnick is under growing pressure as other Trump administration officials publicly question his decisions and what senior officials knew about alleged links between an alleged Chinese spy and Nvidia chief Jensen Huang. The New York Times reports that critics say the department took a softer line on the company as concern mounted over AI chip sales to firms such as Megaspeed.

The GuardianCovered by 2 sources
Close-up of a semiconductor wafer with rows of iridescent chips
Illustrative photo: Close-up of a semiconductor wafer with rows of iridescent chips. Photo by Laura Ockel on Unsplash

Why it matters

Export controls on advanced AI chips are central to the technology rivalry between Washington and Beijing. Any shift in US policy could affect global supply chains for these chips, including markets in the region investing in AI.

Background

The US Commerce Department oversees export controls on sensitive technologies, including advanced chips. Nvidia is one of the leading makers of chips used in artificial intelligence. Decisions on selling such chips to China therefore tend to draw political debate in Washington.

Key points

  • In its framing of the story, the Guardian says Lutnick could face dismissal.
  • The Guardian calls the affair the "Nvidia spying scandal" and refers to Lutnick's "apparent lack of action".
  • The New York Times quotes critics as saying Lutnick and his department "shielded" Nvidia while calls for tougher controls were growing.

How outlets covered it

The Guardian focused on the domestic political fallout: Bessent blaming the Commerce Department, mounting pressure on Lutnick, and questions from administration officials about his decisions and about what senior officials knew of the alleged ties. The New York Times, in the excerpt available, focused on the department's conduct toward Nvidia, quoting critics who say it went easy on the company as concerns grew over chip sales to firms such as Megaspeed. Both outlets center on Lutnick's handling of the issue, though the available Times excerpt does not mention Bessent's remarks or the alleged spying case.

How outlets headlined it

This is a brief summary. The full details and context are in the original coverage.

Read the full story at The Guardian

In this story:China

This summary was prepared with the help of AI based on the source's reporting and may contain errors. Spotted a mistake? Let us know

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