The US Commerce Department determines which foreign buyers can access America’s most advanced AI chips. For now, its chief appears to be the one applying the brakes.
Commerce Secretary Howard Lutnick put on hold a set of restrictions President Trump had floated on sales of Nvidia hardware to China after discussions in the Oval Office. The pause comes as Nvidia’s market value has fallen by an estimated $700 billion as of mid-November 2026, with investors closely monitoring the export dispute.
A memo, a Singapore buyer and a frozen blacklist
The decision was not made in isolation. Lutnick has faced significant pushback within the administration over his handling of export controls on Nvidia’s AI chips.
Before Trump’s trip to China on May 13-15, 2026, Lutnick reportedly received a classified memo concerning Nvidia CEO Jensen Huang’s ties to Alice Huang, a former executive linked to potential Chinese espionage.
Then there is Megaspeed, a Singapore-based Nvidia customer accused of channeling billions of dollars’ worth of chips into China.
Megaspeed has reportedly purchased over $4.8 billion in Nvidia chips since mid-2024. Purchases on that scale have raised concerns about whether US export laws are being followed.
On November 5-6, 2026, Treasury Secretary Scott Bessent challenged Lutnick in a Situation Room meeting over why Megaspeed had not been added to the Entity List.
The Entity List is the Commerce Department’s trade blacklist. Inclusion sharply limits a foreign company’s ability to obtain sensitive US technology.
The department has not added a single new name to the list since October 2025, despite having multiple applications under review.
Pressure building from Congress
The tensions extend far beyond the cabinet. Democratic lawmakers are pressing for stricter limits on exports of advanced AI chips.
They have also set a deadline: Lutnick must provide accountability on the issue by December 1, 2026.
Bessent’s challenge in the Situation Room highlighted frustrations that had already been building on Capitol Hill.
What this means for Nvidia and the chip sector
For Nvidia shareholders, the estimated $700 billion loss in market value is the clearest measure of the impact. It reflects concern over US-China trade relations and the enforcement of restrictions on chip exports to China.
Several developments are worth watching.
The December 1 deadline. Lutnick’s response to the Democratic lawmakers will indicate whether congressional pressure can influence the department.
The Entity List. The first addition since October 2025 would send a meaningful signal. If Megaspeed is added, it would suggest Bessent’s pressure had an effect.
Trump’s proposed curbs. Lutnick put them on hold, but a hold is not the same as a cancellation.
The Huang memo. The reported classified warning about Jensen Huang’s links to Alice Huang adds another layer of scrutiny around Nvidia’s leadership.
For now, US chip-export policy toward China looks less like a unified strategy and more like a negotiation among the officials shaping it. Commerce is holding back, Treasury is pressing, and Congress has marked a date on the calendar.
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