Lutnick faces lawmakers' criticism over Nvidia chip exports to China

what happened

Reuters reports that a growing number of lawmakers are criticizing Commerce Secretary Howard Lutnick. They object to the administration's decision not to add dozens of Chinese companies to a major US trade blacklist, and they question whether Washington has properly supervised Nvidia's chip exports to China. The criticism predates the resignation of Nvidia CEO Jensen Huang, who said he would step down after reports of an affair with a woman US authorities suspect of spying for Beijing.

Senator Elizabeth Warren, a Massachusetts Democrat, demanded answers from Lutnick and Under Secretary Jeffrey Kessler about gaps in export controls. Republican Senator John Kennedy also said officials must explain approvals of advanced chip sales. A White House official said President Donald Trump still has full confidence in the secretary. The Commerce Department had no immediate comment. Senator Tom Cotton, who chairs the Senate Intelligence Committee, wrote to Lutnick asking him to keep CXMT out of the American market and cut its access to US technology.

why it matters

Export curbs on advanced AI chips remain a central risk for Nvidia, whose sales to China have drawn criticism from both parties. A leadership change and tougher oversight could weigh on sentiment in the chip sector, while memory maker CXMT faces possible restrictions in the US.

market impact

Nvidia and chip stocks: tougher China export rules would pressure sales outlook

• ▼Nvidia shares pressure down — possible tighter China export curbs and leadership change add uncertainty

tags

instruments

on polymarket