Howard Lutnick faces scrutiny over Nvidia export controls

Huang resigns as questions mount for Trump and Lutnick

Huang has resigned from his position following a scandal involving espionage at Nvidia.

In the wake of the scandal, questions are being raised regarding the potential involvement or accountability of Donald Trump and Howard Lutnick.

Discrepancies in Lutnick's approach to Nvidia exports

Howard Lutnick adopted a more accommodating position toward Nvidia than his confirmation hearing rhetoric indicated, according to reports from The New York Times and Reuters. The New York Times published a report titled "Howard Lutnick Took Softer Line on Nvidia as Calls for Tougher Controls Grew".

During his confirmation hearing, Lutnick said regarding China's artificial intelligence progress: "We need to stop helping them," and "I’m going to be very strong on that".

A news roundup published on 13 November 2026 includes a discussion regarding whether a Vice-President can be dismissed via Truth Social.

Megaspeed investigation remains unresolved since 2024

The Bureau of Industry and Security began an investigation in 2024 into whether Nvidia chips sold to the Singapore-based data centre company Megaspeed were redirected to China. This inquiry has remained open without a settlement, listing, or closure, leading critics to suggest that political leadership is hindering enforcement.

Regional data centres in Singapore serve as a focal point for the Megaspeed claim, as chips sent to friendly jurisdictions may be diverted to other locations. Jeffrey Kessler leads the Bureau of Industry and Security, which is the unit responsible for the Megaspeed case file.

Commerce Department halts Entity List activity

U.S. export restrictions on H20 chips were implemented in July 2025, and the Entity List saw no activity three months later.

Yahoo News reported the Commerce Department has not added any companies to the Entity List since October 2025, marking approximately 13 months of inactivity as of mid-November 2026.

Congressional demands for oversight and documentation

In March 2026, Senator Warren demanded that the administration pause all export licences for Nvidia chips destined for China.

Senators Warren and Chris Coons have requested that the administration preserve documents concerning Nvidia’s China sales and associated national-security risks, a move often taken before a formal oversight inquiry. Representative Jeffries has also issued requests to Nvidia regarding three separate chip bills.

Administration plans new regional chip restrictions

The administration is preparing new restrictions for seven Southeast Asian countries, including Thailand, Malaysia, and Singapore, to limit remote access to Nvidia chips in regional data centres. Over a 13-month period in 2026, there have been zero listings associated with Lutnick's softer approach to Nvidia.

Nvidia maintains that it complies with all U.S. export laws and has not been shown to have violated them, with allegations of diversion focusing on resellers and downstream buyers. The company stated that it complies with U.S. export laws, and the current reporting does not accuse the company of proven violations.

There is no official record of Lutnick personally blocking a specific Nvidia export action, and he has not admitted to taking a "softer line" on the company.