White House Officials Clash as Nvidia Affair Raises National Security Questions
Andrew Powell · Nov 14, 2026 · 2 min read
A reported clash between Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick erupted inside the White House Situation Room as officials debated the handling of a company allegedly connected to a suspected Chinese spy.
According to Fox News, the confrontation followed reports that Nvidia CEO Jensen Huang had an affair with Alice Huang, an executive at Singapore-based Megaspeed International who is suspected of being a Chinese intelligence operative.
Axios further reported that Lutnick faced criticism for delaying restrictions on Megaspeed despite receiving an intelligence memo outlining the potential national security concerns.
Bessent reportedly challenged Lutnick over why the company had not been placed on the Commerce Department’s Entity List, with other officials backing the Treasury secretary.
President Donald Trump had approved action against companies suspected of diverting Nvidia's advanced artificial intelligence chips to China on three occasions: in May, August and the previous week, Axios reported.
Megaspeed, reportedly one of Nvidia’s largest customers, was among the companies under scrutiny.
The Entity List is used by the Commerce Department to impose export controls on businesses considered national security risks.
During the Situation Room meeting, Lutnick reportedly said he needed to discuss the matter with Trump, despite the president’s earlier directives.
The officials later met with Trump in the Oval Office, where the president again ordered the restrictions to move forward, reportedly telling them, “Let's get it done.”
Lutnick still declined to immediately carry out the order, saying he would develop options and return with them. Other officials reportedly responded that the president had already made his decision and that Lutnick needed to execute it.
The Commerce Department did not directly address the reported confrontation. Spokesperson Kristen Eichamer told Fox News that the Commerce and Treasury departments maintain a strong working relationship and remain committed to advancing Trump’s agenda.
She also said Lutnick had proactively agreed to testify before the Senate Banking Committee. The hearing is scheduled for Dec. 10.
Bessent was asked about the dispute during an appearance on CNBC's “Squawk Box” Thursday. He acknowledged coordination among agencies over Megaspeed’s potential placement on the Entity List but directed questions about internal discussions to the Commerce Department and its Bureau of Industry and Security.
Huang reportedly resigned as Nvidia CEO Thursday morning, and the company has opened an investigation into the alleged affair.