Trump nodded three times, but why Lutnick didn’t take action! A foreign media article shocked the "Insider of the White House"

NVIDIA CEO Jen-Hsun Huang announced his resignation on Thursday (12th) due to the extramarital affair scandal. However, the Washington Post commented that the scandal was far more than just extramarital affairs and espionage suspicions. It also exposed major loopholes in U.S. chip export controls and the excessive discretionary power of government officials in whether to plug these loopholes.

According to "Axios" reports, multiple U.S. government officials confronted Commerce Secretary Lutnick in the White House Situation Room last week, demanding the promotion of relevant restrictive measures. However, he reportedly objected on the grounds that it might anger China. Officials then submitted the dispute to the Oval Office. Trump agreed to take relevant measures for the third time, having previously expressed support in May and August respectively. The article also pointed out that, allegedly out of President Trump's hearing, Lutnick said he would "make some plans and then respond." In response, the Ministry of Commerce denied that the confrontation had ever occurred.

In this regard, the "China Post" bluntly stated that the U.S. chip export control now faces a problem, and that is Commerce Secretary Howard Lutnick. The article further questioned why Lutnick, who effortlessly cited national security to justify imposing tariffs on Canadian steel and aluminum products, was so unwilling to blacklist a company suspected of transferring advanced American chips to China. Is China a more formidable opponent than Canada?

Huang Jen-Hsun's extramarital affair partner, Alice Huang, once worked for the Singaporean company Megaspeed and purchased more than US$4.6 billion (approximately NT$151.1 billion) of Huida chips in less than three years. U.S. authorities have long suspected that Megaspeed transferred chips to China. Related concerns were reported to the media more than a year ago. However, both Megaspeed and Huida have denied wrongdoing. Huida also emphasized that internal inspections found no evidence that chips were transferred.

The commentary pointed out that the U.S. Departments of State, Defense, Energy and Treasury all support placing Megaspeed on the trade blacklist, but Lutnick has been slow to take action for months. According to "Axios" reports, multiple government officials confronted Lutnick in the White House Situation Room last week, demanding that relevant restrictions be promoted.

But Lutnick reportedly objected on the grounds that it might anger China, and officials then brought the dispute to the Oval Office, where Trump agreed to take the measures for a third time, having previously expressed support in May and August. However, Lutnick reportedly said he would study other options before responding when Trump was not present. The U.S. Commerce Department denied that the confrontation ever took place.

"The Post" pointed out that Huang Renxun has long opposed restrictions on chip exports to China and believes that excluding Huida from the Chinese market will instead stimulate China to develop local substitute products and weaken the United States' technological advantages. Although the extramarital affair damaged its credibility, the claim itself was not dubious and served Huida's business interests.

However, the responsibility of top government officials goes beyond creating shareholder value. The commentary pointed out that since the Biden administration introduced the export ban on advanced chips, control loopholes have always existed in the United States. Chips are small and easy to smuggle, and together with brokers, third-country intermediaries and overseas data centers, it is difficult to control the final flow of advanced technology. An investigation in 2024 found that institutions related to the Chinese military were still able to obtain Huida's advanced chips that had been banned from export.

The article questioned Lutnick, who had supported tariffs on Canadian steel and aluminum on the grounds of national security. Why did he seem so unwilling to take restrictive measures against companies suspected of transferring advanced American chips to China? Blacklisting companies is an interdepartmental decision and not the personal prerogative of the Commerce Secretary.

The commentary stressed that companies should compete under clear rules rather than seeking the favor of officials who have the power to license exports. The U.S. Congress has a duty to pursue Lutnick's dealings with Huida, including the large amount of Huida shares disclosed in Cantor Fitzgerald, the financial company he once ran and is now led by his son. The company said the securities were held on behalf of clients and were not evidence of wrongdoing.

The article concludes by pointing out that the Trump administration’s overly relaxed attitude toward conflicts of interest has cost public trust, and now this price is gradually emerging.