{"id":74718,"date":"2026-11-15T13:08:12","date_gmt":"2026-11-15T17:08:12","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/lutnick-faces-cabinet-pressure-over-nvidia-china-export-controls\/74718\/"},"modified":"2026-11-15T13:08:12","modified_gmt":"2026-11-15T17:08:12","slug":"lutnick-faces-cabinet-pressure-over-nvidia-china-export-controls","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/lutnick-faces-cabinet-pressure-over-nvidia-china-export-controls\/74718\/","title":{"rendered":"Lutnick Faces Cabinet Pressure Over Nvidia-China Export Controls"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>Commerce Secretary Howard Lutnick<\/strong> has reportedly stalled three separate orders from <strong>President Donald Trump<\/strong> to crack down on the diversion of <strong><a href=\"https:\/\/stockmarketwatch.com\/stock\/NVDA\" data-internallinksmanager029f6b8e52c=\"15\" title=\"stock: NVDA\">Nvidia<\/a> (<a href=\"\/stock\/NVDA\">NVDA<\/a>)<\/strong> AI chips to <strong>China<\/strong>.<\/li>\n<li><strong>Treasury Secretary Scott Bessent<\/strong> publicly rebuked the <strong>Commerce Department<\/strong>, stating that multiple agencies\u2014including <strong>State<\/strong>, <strong>Defense<\/strong>, and <strong>USTR<\/strong>\u2014supported blacklisting the Singapore-based firm <strong>Megaspeed<\/strong> months ago.<\/li>\n<li><strong><a href=\"https:\/\/stockmarketwatch.com\/stock\/NVDA\" data-internallinksmanager029f6b8e52c=\"15\" title=\"stock: NVDA\">Nvidia<\/a> (<a href=\"\/stock\/NVDA\">NVDA<\/a>)<\/strong> has lost approximately <strong>$700 billion<\/strong> in market value as of mid-November 2026, following the resignation of CEO <strong>Jensen Huang<\/strong> amid a suspected Chinese espionage scandal.<\/li>\n<li>Internal friction has reached a boiling point in the <strong>Situation Room<\/strong>, where <strong>Bessent<\/strong> confronted <strong>Lutnick<\/strong> over his department&#39;s refusal to add <strong>Megaspeed<\/strong> to the <strong>Entity List<\/strong> despite its reported <strong>$4.8 billion<\/strong> in chip purchases.<\/li>\n<\/ul>\n<h2>Cabinet Clash Over National Security and Trade<\/h2>\n<p>A high-stakes divide has emerged within the <strong>Trump administration<\/strong> regarding the enforcement of technology exports to <strong>China<\/strong>. <strong>Commerce Secretary Howard Lutnick<\/strong> is facing intense scrutiny for allegedly blocking efforts to restrict <strong><a href=\"https:\/\/stockmarketwatch.com\/stock\/NVDA\" data-internallinksmanager029f6b8e52c=\"15\" title=\"stock: NVDA\">Nvidia<\/a> (<a href=\"\/stock\/NVDA\">NVDA<\/a>)<\/strong> hardware from reaching Chinese entities through third-party intermediaries. Reports indicate that <strong>President Trump<\/strong> authorized crackdowns in <strong>May<\/strong>, <strong>August<\/strong>, and most recently on <strong>November 5, 2026<\/strong>, yet the <strong>Commerce Department<\/strong> has failed to implement these directives.<\/p>\n<p>The tension became public when <strong>Treasury Secretary Scott Bessent<\/strong> criticized the delay on <em>CNBC<\/em>, noting that &quot;Commerce has the pen&quot; regarding the <strong>Entity List<\/strong>. This trade blacklist is the primary tool for restricting foreign companies from accessing sensitive U.S. technology. <strong>Bessent<\/strong> emphasized that the <strong>Treasury<\/strong>, <strong>State<\/strong>, and <strong>Defense<\/strong> departments have been in favor of blacklisting <strong>Megaspeed International<\/strong>\u2014a Singapore-based company suspected of funneling chips to <strong>China<\/strong>\u2014for several months.<\/p>\n<h2>The Nvidia Scandal and Market Impact<\/h2>\n<p>The administrative deadlock coincides with a historic crisis at <strong><a href=\"https:\/\/stockmarketwatch.com\/stock\/NVDA\" data-internallinksmanager029f6b8e52c=\"15\" title=\"stock: NVDA\">Nvidia<\/a> (<a href=\"\/stock\/NVDA\">NVDA<\/a>)<\/strong>. The company&#39;s co-founder and long-time CEO, <strong>Jensen Huang<\/strong>, resigned on <strong>November 11, 2026<\/strong>, following reports of a relationship with <strong>Alice Huang<\/strong>, a former executive at <strong>Megaspeed<\/strong> whom U.S. intelligence officials believe was recruited by <strong>China&#39;s Ministry of State Security<\/strong>. <strong><a href=\"https:\/\/stockmarketwatch.com\/stock\/NVDA\" data-internallinksmanager029f6b8e52c=\"15\" title=\"stock: NVDA\">Nvidia<\/a> (<a href=\"\/stock\/NVDA\">NVDA<\/a>)<\/strong> shares have plummeted, erasing nearly <strong>$700 billion<\/strong> in market capitalization as investors weigh the risks of expanded export bans and leadership instability.<\/p>\n<p><strong>Lutnick&#39;s<\/strong> resistance to these curbs has drawn criticism due to his former role as CEO of <strong>Cantor Fitzgerald<\/strong>, which held a <strong>$1.2 billion<\/strong> stake in <strong><a href=\"https:\/\/stockmarketwatch.com\/stock\/NVDA\" data-internallinksmanager029f6b8e52c=\"15\" title=\"stock: NVDA\">Nvidia<\/a> (<a href=\"\/stock\/NVDA\">NVDA<\/a>)<\/strong> at the time of his nomination. While a spokesperson stated <strong>Lutnick<\/strong> has divested his interests, critics point to the fact that <strong>Cantor Fitzgerald<\/strong>\u2014now run by his sons\u2014reduced its <strong><a href=\"https:\/\/stockmarketwatch.com\/stock\/NVDA\" data-internallinksmanager029f6b8e52c=\"15\" title=\"stock: NVDA\">Nvidia<\/a> (<a href=\"\/stock\/NVDA\">NVDA<\/a>)<\/strong> position by <strong>49%<\/strong> between <strong>September 2025<\/strong> and <strong>March 2026<\/strong>, a period during which the <strong>Commerce Department<\/strong> was already under pressure to tighten controls.<\/p>\n<h2>Political and Economic Fallout<\/h2>\n<p>The standoff is complicating <strong>President Trump&#39;s<\/strong> broader trade agenda. <strong>Lutnick<\/strong> has warned that aggressive export controls could trigger a retaliatory trade war, potentially undermining the administration&#39;s signature tariff policies. However, bipartisan pressure is mounting in <strong>Congress<\/strong>, with the <strong>House Foreign Affairs Committee<\/strong> demanding transparency into why the <strong>Commerce Department<\/strong> continued to permit exports despite warnings of Chinese intelligence activities.<\/p>\n<p>As <strong>President Trump<\/strong> prepares for high-level meetings at the <strong>APEC forum<\/strong> in <strong>Shenzhen<\/strong>, the future of his economic team remains uncertain. Reports suggest that senior <strong>White House<\/strong> officials are discussing whether <strong>Lutnick<\/strong> should be removed from his post. Such a move could significantly shift the balance of power within the administration, potentially giving more influence to <strong>U.S. Trade Representative Jamieson Greer<\/strong> and signaling a more hawkish turn in the ongoing tech-trade conflict with <strong>Beijing<\/strong>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Commerce Secretary Howard Lutnick has reportedly stalled three separate orders from President Donald Trump to crack down on 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