White House Officials Discuss Pushing Lutnick Out Over China Chips
Senior White House officials are discussing whether Commerce Secretary Howard Lutnick should be pushed out after the Nvidia spy scandal, two people familiar with the matter told Reuters, as Trump was said to retain complete confidence in him.
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Two people familiar with the matter told Reuters on Thursday that senior White House officials were weighing whether Commerce Secretary Howard Lutnick should be forced from his post, after Jensen Huang resigned as Nvidia’s chief executive.
The talks follow a spy scandal surrounding Huang, who left after revelations of an affair with Alice Huang, whom U.S. authorities suspect of spying for Beijing.
Criticism of Lutnick predates that resignation, Reuters said, and has focused on a refusal to add dozens of Chinese companies to a key U.S. trade blacklist and on oversight of Nvidia’s exports to China.
Trump Expresses Full Confidence
The White House did not immediately respond to a request for comment on Lutnick’s future, Reuters reported.
A White House official said President Donald Trump “maintains complete confidence in the secretary and his ability to carry out the position as the most transformative Commerce Secretary in modern history.”
The Commerce Department did not immediately comment.
Lawmakers Demand Tougher Controls
Sen. Elizabeth Warren, the incoming Senate Banking Committee chair, said Lutnick and Under Secretary Jeffrey Kessler “must explain why they have not closed export control loopholes and act today to ensure our advanced technology is not fueling China’s military.”
Warren and Sen. Chris Coons, the incoming Senate Foreign Relations Committee chairman, asked Lutnick, Secretary of State Marco Rubio and White House Chief of Staff Stephen Miller to preserve all documents on Nvidia’s China chip shipments and national security risks.
They cited Alice Huang’s role at Singapore-based Megaspeed, which has bought more than $4.8 billion in advanced Nvidia chips since June 2024.
Rep. Brian Mast, a Florida Republican, said Congress should investigate how the Commerce Department approves chip exports, while adding that he has confidence in Lutnick. Sen. John Kennedy, a Louisiana Republican, told Politico that Lutnick needs to answer questions about those sales.
Blacklist Freeze Draws Fire
In June, Reuters reported that the administration had held off adding DeepSeek, memory chipmaker CXMT and more than 100 other firms flagged as national security risks to the blacklist. The U.S. has posted no additions since October 2025, the longest gap in more than a decade.
Firms tied to Alice Huang have since invested in DeepSeek and promised to supply Nvidia chips banned from sale to China.
Sen. Tom Cotton, the Senate Intelligence Committee chairman, urged Lutnick to bar CXMT from the U.S. market, calling the company “a growing risk to our economic prosperity and military superiority.”
Axios reported that Lutnick had stalled a crackdown, ordered by Trump, on companies suspected of diverting Nvidia chips to China.
Nvidia Exit Widens Fallout
Nvidia’s board named chief financial officer Colette Kress as interim chief executive. Trump has said Tim Cook of Apple should take the job.
Kamer Kurunç
Kamer Kurunç is the Team Leader of Clash Report and has led the outlet for four years. He oversees its breaking world news coverage, from the Middle East and the Russia-Ukraine war to defense and global politics. His focus is fast, verified, source-based reporting. Follow him on X at @kamerknc.
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