Donald Trump has authorized a crackdown on companies suspected of diverting Nvidia's chips to China for the third time this year. US President had consulted billionaire Elon Musk before giving the go-ahead. However, US Commerce Secretary Howard Lutnick stalled President Trump's crackdown on companies suspected of diverting Nvidia's chips to China, Axios reported on Wednesday, citing high-level sources.
Lutnick met in the Situation Room on Thursday with US Treasury Secretary Scott Bessent, Defense Secretary Pete Hegseth, Trade Representative Jamieson Greer and Secretary of State Marco Rubio.
During the meeting, Bessent confronted Lutnick about resistance from his department on implementing the export controls. Lutnick appeared to agree but said he needed to check with Trump, according to Axios.
This comes after a controversy surrounding Nvidia CEO Jensen Huang and the chipmaker's China business has spiraled into a national-security and political storm, drawing scrutiny from lawmakers, the company's board and investors.
The fallout has also intensified a long-running debate in Washington over whether the US should allow its most advanced AI chips to be sold to China.
US President Donald Trump's close relationship with embattled Nvidia CEO Jensen Huang came under renewed scrutiny on Monday, after the company said its board was investigating whether the tech executive has been the target of a foreign intelligence effort.
Huang is one of Trump's closest allies in Silicon Valley, and the relationship between the two dates to at least 2025. Over the past two years, he has repeatedly voiced support for the administration's agenda and become a regular presence in Washington as Nvidia sought to sell advanced chips to the Chinese market.
Advanced chips are the backbone of the US AI boom and government officials have previously tried to restrict China's access to them through export controls to stifle its AI capabilities.
Nvidia's board launched its probe after a New York Times report said Huang had a close relationship with a Chinese businesswoman whom US intelligence officials believe passed information to the Chinese government. Nvidia shares hit a seven-month low on Monday.
Huang has a direct line to the president. A Reuters reporter saw Huang's full name pop up on Trump's phone in December 2025.
Huang flew with Trump to China on Air Force One in May, the first visit by a US president to China in nearly a decade. Huang attended a high-profile state dinner in September for Chinese President Xi Jinping at the White House. The company committed $25 million for Trump's planned White House ballroom, according to media reports.
Lutnick met in the Situation Room on Thursday with US Treasury Secretary Scott Bessent, Defense Secretary Pete Hegseth, Trade Representative Jamieson Greer and Secretary of State Marco Rubio.
During the meeting, Bessent confronted Lutnick about resistance from his department on implementing the export controls. Lutnick appeared to agree but said he needed to check with Trump, according to Axios.
This comes after a controversy surrounding Nvidia CEO Jensen Huang and the chipmaker's China business has spiraled into a national-security and political storm, drawing scrutiny from lawmakers, the company's board and investors.
The fallout has also intensified a long-running debate in Washington over whether the US should allow its most advanced AI chips to be sold to China.
US President Donald Trump's close relationship with embattled Nvidia CEO Jensen Huang came under renewed scrutiny on Monday, after the company said its board was investigating whether the tech executive has been the target of a foreign intelligence effort.
Huang is one of Trump's closest allies in Silicon Valley, and the relationship between the two dates to at least 2025. Over the past two years, he has repeatedly voiced support for the administration's agenda and become a regular presence in Washington as Nvidia sought to sell advanced chips to the Chinese market.
Advanced chips are the backbone of the US AI boom and government officials have previously tried to restrict China's access to them through export controls to stifle its AI capabilities.
Nvidia's board launched its probe after a New York Times report said Huang had a close relationship with a Chinese businesswoman whom US intelligence officials believe passed information to the Chinese government. Nvidia shares hit a seven-month low on Monday.
Huang has a direct line to the president. A Reuters reporter saw Huang's full name pop up on Trump's phone in December 2025.
Huang flew with Trump to China on Air Force One in May, the first visit by a US president to China in nearly a decade. Huang attended a high-profile state dinner in September for Chinese President Xi Jinping at the White House. The company committed $25 million for Trump's planned White House ballroom, according to media reports.