Washington — Treasury Deputy Secretary Scott Bessent told CNBC that President Trump wants to stop sophisticated Nvidia chips from reaching China through third‑party channels. He said any “leakage” of advanced computer chips is “frustrating” and that the Commerce Department must act.

Concerns Over Potential Pass‑Throughs

Bessent raised questions about whether Nvidia knew its customers and whether the company had robust safeguards to prevent its products from being diverted to Chinese entities. He suggested that if shell companies were used to funnel chips, responsible parties at Nvidia should be held accountable.

Political Pressure on Commerce

The Treasury official reportedly confronted Commerce Secretary Howard Lutnick in the White House Situation Room about the department’s alleged reluctance to enforce stricter export controls. While Lutnick declined to discuss the closed‑door meeting, the White House affirmed its confidence in the Commerce Secretary.

Legislative Oversight

The Senate Banking Committee has scheduled a hearing for December 10, calling Secretary Lutnick to testify on export‑control policies. Lawmakers are seeking clarity on whether Nvidia’s former CEO Jensen Huang’s personal relationships, including an affair with a suspected Chinese spy, may have facilitated the diversion of chips.

Background on the Nvidia Scandal

Jensen Huang recently resigned from Nvidia after revelations of a second affair with an executive reporting to him. His former partner, Alice Huang, is a major shareholder in Singapore‑based AI firm Megaspeed, prompting questions about possible use of that company as a conduit for chip exports.

Bessent emphasized that the Treasury is monitoring the situation and working with Commerce to close any gaps in the export‑control system. He reiterated President Trump’s stance that America must protect its technological edge and national security interests.

Original reporting: WMAL (Washington DC) — read the source article.