Before Trump’s trip to China on May 13-15, 2026, Lutnick reportedly received a classified memo. It concerned Nvidia CEO Jensen Huang’s ties to Alice Huang, a former executive linked to potential Chinese espionage.
Then there is Megaspeed. The Singapore-based company is an Nvidia customer accused of funneling billions of dollars’ worth of chips into China.
Megaspeed has reportedly bought over $4.8 billion in Nvidia chips since mid-2024. Purchases on that scale have raised red flags over whether US export laws are being followed.
On November 5-6, 2026, Treasury Secretary Scott Bessent confronted Lutnick in a Situation Room meeting about why Megaspeed had not been placed on the Entity List.
The Entity List is the Commerce Department’s trade blacklist. Landing on it sharply restricts a foreign company’s ability to receive sensitive US technology.
Since October 2025, the department has not added a single new name to it, even though multiple applications have been under review.
Pressure building from Congress
The friction extends well beyond the cabinet. Democratic lawmakers are pushing for tighter limits on advanced AI chip exports.
They have also set a deadline. Lutnick has until December 1, 2026, to provide accountability on the issue.
Bessent’s challenge in the Situation Room underscored frustrations that had already been building on Capitol Hill.
What this means for Nvidia and the chip sector
For Nvidia shareholders, the estimated $700 billion drop in market value is the clearest scoreboard. It reflects anxiety over US-China trade relations and over how chip exports to China are being policed.
There are several markers worth tracking from here.
The December 1 deadline. How Lutnick responds to the Democratic lawmakers will show whether congressional pressure can move the department.
The Entity List. The first addition since October 2025 would be a meaningful signal. If Megaspeed is the name added, it would suggest Bessent’s push landed.
Trump’s proposed curbs. Lutnick stalled them, but stalled is not the same as killed.
The Huang memo. The reported classified warning about Jensen Huang’s links to Alice Huang adds a layer of scrutiny around Nvidia’s leadership.
For now, the US chip-export policy toward China looks less like a single strategy and more like a negotiation among the people writing it. Commerce is holding back, Treasury is pushing, and Congress has circled a date on the calendar.