US Treasury Secretary Scott Bessent has criticised the Commerce Department for delaying efforts to place Singapore-based technology company Megaspeed on Washington’s trade blacklist over allegations that it helped Chinese businesses gain access to advanced Nvidia artificial intelligence chips in violation of American export restrictions.
Bessent said several key government agencies, including the Treasury Department, Pentagon, State Department and Office of the United States Trade Representative, had supported the proposed move for months, but the Commerce Department had yet to take action.
Speaking during an interview with CNBC’s Squawk Box on Friday, November 13, 2026, Bessent indicated that there had been broad support within the administration for restricting Megaspeed’s access to American technology, but stressed that the final decision rested with the Commerce Department.
“But Commerce has the pen,” Bessent said, adding that questions about the delay should be directed to the department and its internal decision-making processes.
The remarks represent an unusually public criticism of one government department by another and have intensified scrutiny of Commerce Secretary Howard Lutnick, whose department is responsible for administering US export controls on sensitive technologies.
At the centre of the disagreement is the growing concern in Washington that advanced Nvidia processors could be reaching Chinese companies through third-party businesses operating outside the United States.
Megaspeed, a Singapore-based cloud computing and artificial intelligence infrastructure company, has attracted attention over suspicions that it purchased Nvidia processors for data centres in Southeast Asia before allegedly facilitating their transfer to Chinese customers.
The company has reportedly handled more than $4 billion worth of Nvidia hardware, making its business activities a significant focus of the wider investigation into possible weaknesses in American technology export restrictions.
Bessent expressed frustration over what he described as the leakage of restricted technology, warning that such developments could undermine America’s position in the global artificial intelligence race.
He said President Donald Trump had made it clear that China should not have access to Nvidia processors more advanced than the H100 model.
“Any leakage is very frustrating because it hurts our great companies, and in the AI race gives the Chinese an advantage,” he said.
The Treasury Secretary’s comments come amid growing concerns among American lawmakers about whether existing export restrictions are being properly enforced and whether companies involved in the international distribution of advanced computing equipment are adequately monitored.
The Megaspeed controversy has also attracted attention because of reports linking the company’s former executive, Alice Huang, to alleged Chinese intelligence activities.
Alice Huang, who is not related to Nvidia co-founder Jensen Huang, has been the subject of scrutiny following allegations by US authorities that she may have connections to Chinese intelligence.
Reports of her personal relationship with the former Nvidia chief executive have further complicated the situation, bringing the technology company’s leadership and business relationships under increased public scrutiny.
Jensen Huang reportedly acknowledged in a communication to Nvidia employees that he had been unfaithful to his wife, although he did not publicly identify the woman involved.
He subsequently stepped down as Nvidia’s chief executive, triggering further questions about the company’s corporate governance and its relationship with Megaspeed.
However, Bessent has urged investigators and the public to focus less on Huang’s private life and more on the business practices that may have allowed restricted technology to reach unauthorised destinations.
He argued that the central issue was whether Nvidia conducted sufficient checks on its customers and whether the company had adequate safeguards to prevent its products from being diverted through intermediary businesses.
“The story thus far has been on Jensen Huang’s personal foibles,” Bessent said.
“The real story here should be: Did Nvidia know their client, and was there a robust effort at Nvidia to make sure that there was no leakage.”
He also questioned whether Nvidia had supplied advanced processors to companies that could have been operating as intermediaries for the transfer of restricted American technology to China.
Bessent stressed that individuals within the company should be held accountable if investigations establish that appropriate safeguards were not followed.
His comments suggest that the administration’s concerns extend beyond the conduct of Megaspeed to include the responsibilities of major American technology manufacturers in monitoring their international customers.
Meanwhile, Megaspeed has rejected suggestions that it has deliberately violated American export restrictions.
In a statement issued on Thursday, November 12, the company’s chairman and chief executive, James Tan Yong Pong, said compliance with US export control laws remained a priority.
He maintained that the company had cooperated with inspections conducted by the US Department of Commerce’s Bureau of Industry and Security and was prepared to work with other relevant American authorities.
Megaspeed also indicated that it had engaged an American law firm to conduct a comprehensive review of its graphics processing units and independently assess its export compliance procedures.
The company said it was committed to working transparently with the US government, maintaining that it took its legal obligations seriously.
The developments have also increased pressure on Lutnick, with lawmakers from both sides of the political divide seeking explanations over the handling of export restrictions and the administration’s response to concerns surrounding Nvidia chip distribution.
Senate Banking Committee Chairman Tim Scott has asked Lutnick to testify, as congressional scrutiny of the matter continues.
Bessent, however, maintained that the United States already has sufficient legal authority to prevent restricted artificial intelligence technology from reaching prohibited destinations, arguing that the existing rules simply need to be properly enforced.
“We have all the authorities that we need. They just need to be implemented,” he said.
The dispute highlights the growing strategic importance of artificial intelligence technology in the relationship between the United States and China.
As both countries compete for leadership in advanced computing, semiconductor manufacturing and artificial intelligence development, access to powerful processors has become a major national security and economic concern.
For Washington, preventing the diversion of restricted Nvidia chips is not only about protecting American technology companies but also about maintaining its competitive position in an increasingly important global industry.
The disagreement between the Treasury and Commerce departments therefore raises broader questions about coordination within the US government and the effectiveness of its export control system.
With Megaspeed facing continued scrutiny and lawmakers demanding greater accountability, attention is now focused on whether the Commerce Department will proceed with the proposed restrictions and what additional measures the administration may introduce to strengthen oversight of advanced chip exports.
