Lutnick agrees to testify as chip scandal reaches Commerce Department

Commerce Secretary Howard Lutnick agreed on Thursday to testify voluntarily before the Senate Banking Committee, his spokesperson said, amid bipartisan criticism of his handling of chip export controls.

On Thursday, Tim Scott, who chairs the committee, sent letters asking Lutnick and Jensen Huang, Nvidia's chief executive, to appear voluntarily. He proposed 10 December for Lutnick and 3 December for Huang.

Huang resigned on Thursday. Nvidia's chief financial officer, Colette Kress, replaced him on an interim basis. He stepped down after reports of an affair with Alice Huang, a Megaspeed executive whom US intelligence officials suspect of spying for China; the two aren't related.

Criticism of Lutnick has focused on the Commerce Department's delay in placing Megaspeed, based in Singapore and associated with Alice Huang, on the US trade blacklist. Since June 2024, the company has spent more than $4.8 billion on advanced Nvidia AI chips.

In June, Reuters reported that the administration held off adding DeepSeek, the Chinese AI startup, the memory chipmaker CXMT and more than 100 other firms flagged as national security risks to the blacklist. The Commerce Department's last addition to its Entity List was in October 2025, leaving the longest gap between new postings in more than a decade.

How the blacklist effort stalled

Axios reported that Lutnick stalled Trump's crackdown on companies suspected of diverting Nvidia chips to China. At an Oval Office meeting, treasury secretary Scott Bessent confronted him over his reluctance to implement export controls. Defense secretary Pete Hegseth, trade representative Jamieson Greer, secretary of state Marco Rubio and the national security adviser were in the room. Lutnick said he would have to talk to the president.

Senators in both parties want answers

The burden fell on Lutnick and Under Secretary Jeffrey Kessler, said Elizabeth Warren, a Democratic senator.

Republican senator Kennedy told CNN he was unsure whether Lutnick should lose his job, saying, "I don’t know yet." He called the matter as serious as an aneurysm.

Circumvention of national security export controls required a thorough investigation and accountability, Republican senator John Cornyn told the Financial Times. "Heads should roll," he said.

Utah Republican John Curtis said the reported delay over Megaspeed raised the question of whether the Commerce Department was acting in the best interests of the American people.

Both Republican senators Thom Tillis and Jim Banks urged Lutnick to give testimony about apparent sales of chips to China through loopholes.

Democratic senator Richard Blumenthal said Lutnick should appear voluntarily, or "he may need to be subpoenaed" if he does not. He wanted an answer to one question: "Were export controls relaxed?"

CNBC reported that Tom Cotton, the Republican who chairs the Senate intelligence committee, pressed Lutnick to restrict CXMT, China's memory chipmaker, in the US market and block its access to American technology.

Investigations opened in both chambers

On Thursday, Ron Wyden, a senator, and Richard Neal, a representative, wrote to Lutnick saying they were investigating approvals of Nvidia AI chip sales to Chinese companies with concerning links to the Chinese government, the military and sanctioned entities. They questioned Trump's decision to allow Nvidia to sell advanced H200 AI chips in China in December 2025, with a portion of export sales going in return, which they called an unconstitutional export tax.

Chris Coons, the incoming chair of the Senate Foreign Relations Committee, joined Warren in urging Lutnick, Marco Rubio, the secretary of state, and Stephen Miller, the White House chief of staff, to preserve documents on Nvidia's AI chip exports to China.

Chuck Schumer, the Senate Democratic leader, questioned what Trump knew when he took Jensen Huang on Air Force One during a state visit to Beijing earlier this year. Hakeem Jeffries, the House Democratic leader, demanded a classified briefing for all members of Congress.

Congressional staff had discussed with Nvidia on Wednesday night when and where Huang would testify, said Brian Mast, who chairs the House foreign affairs committee. Congress also needed to examine the Commerce Department's role in approving chip exports, and Mast expressed confidence in Lutnick. House Speaker Mike Johnson said support in Congress was growing for curbs on chip exports to China following the scandal that led to Huang's resignation.

The New York Times reported that Trump urged Huang to fight for his job in a call two days before Huang stepped down. A US intelligence report on Huang's relationship with the alleged spy had been circulated among senior figures in the administration.

1. June 2024Megaspeed buys

   Megaspeed starts buying advanced Nvidia AI chips; purchases pass $4.8bn.

2. October 2025Last addition

   The Commerce Department adds its most recent company to the Entity List.

3. ThursdayHuang resigns

   Jensen Huang steps down; Colette Kress becomes interim chief executive. Tim Scott sends his letters.

4. 3 DecemberHuang proposed

   The date Scott proposes for Huang's voluntary appearance.

5. 10 DecemberLutnick proposed

   The date Scott proposes for Lutnick's voluntary appearance.

Democrats were already expected to scrutinise Lutnick's tenure after winning both chambers in last week's midterm elections, including his ties to the cryptocurrency firm Tether and deals involving USA Rare Earth and Vulcan Elements. Lutnick, a Wall Street executive, co-chaired Trump's transition and has been friends with the president for 30 years.

Scott has proposed 10 December for Lutnick and 3 December for Huang. Neither appearance has been confirmed.