Scoop: Inside Bessent's Situation Room confrontation with Lutnick over China chip security
Officials are at odds over a suspected chip diversion.
TL;DR
- Treasury Secretary Scott Bessent confronted Commerce Secretary Howard Lutnick about not blacklisting Megaspeed.
- Megaspeed is accused of illegally diverting U.S. chips to China.
- Commerce Undersecretary Jeff Kessler was also warned but deferred decisions to Lutnick.
- Lutnick has reportedly resisted action against Megaspeed for a year due to concerns about escalating trade wars with China.
- Intelligence memos, including one from National Security Adviser Marco Rubio, have highlighted issues with Megaspeed.
- Recent reports indicate the Commerce Department has delayed or stopped investigations into Megaspeed.