Will AI chips be allowed to be exported to China? The Jen-Hsun Huang scandal spreads, and the White House is rumored to be discussing replacing the Secretary of Commerce
According to people familiar with the matter, as former Huida CEO Jen-Hsun Huang is involved in the spy scandal, senior White House officials are evaluating Lutnick's departure.
Quick Look
- Top White House officials are discussing whether to replace Commerce Secretary Lutnick amid criticism from U.S. lawmakers for not adding dozens of Chinese companies to a trade blacklist and questions about Huida's export regulations to China.
- Former Huida CEO Huang Renxun resigned due to his extramarital affair with Huang Le and suspicion of espionage, and the incident continued to escalate.
- The White House and Commerce Department did not respond to requests for comment, but a White House official said President Trump still has confidence in Lutnick.
AI-generated summary
Why It Matters
U.S. lawmakers criticized Commerce Secretary Lutnick for not adding dozens of Chinese companies to a trade blacklist and questioned the government's supervision of Huida's exports to China. Former Huida CEO Huang Renxun resigned due to his extramarital affair with suspected spy Huang Le, and the incident continued to escalate.
People familiar with the matter revealed on the 12th that senior White House officials are discussing whether Commerce Secretary Lutnick should be replaced. (Bloomberg file photo)
[Instant News/Comprehensive Report] Two people familiar with the matter revealed on the 12th that with former Nvidia CEO Jen-Hsun Huang being involved in the spy scandal, senior White House officials are discussing whether Commerce Secretary Howard Lutnick should be replaced.
Reuters reported that a growing number of U.S. lawmakers have criticized Lutnick over the Trump administration's refusal to add dozens of Chinese companies to a major U.S. trade blacklist and whether the government properly regulates Huida's exports to China.
The report pointed out that criticism of Lutnick had appeared before Huang Renxun resigned on the 12th. Huang Renxun announced his resignation as CEO of Huida after it was revealed that he had an extramarital affair with Huang Le. U.S. authorities suspect Huang Le of spying for Beijing.
As the controversy caused by Huang Jen-Hsun-related incidents continues to expand, criticism from the outside world that Lutnick has not fully restricted the export of AI chips to China has gradually emerged.
Neither the White House nor the Commerce Department immediately responded to requests for comment after Reuters revealed that White House officials were discussing Lutnick's departure.
However, a White House official said earlier on the 12th that President Trump "remains confident in the secretary and his ability to perform his duties."
Reuters reported in June this year that the Trump administration had suspended the addition of Chinese AI startup DeepSeek, memory chip manufacturer Changxin Memory (CXMT), and more than 100 other Chinese companies deemed to pose national security risks to the trade blacklist.
Since October 2025, the United States has not announced any new companies added to the trade blacklist, creating the longest list update window in more than 10 years. Reuters reported earlier that the U.S. Commerce Department did not add new Chinese companies to the list for fear of exacerbating tensions between the United States and China.
What to Watch
AI outlook — possibilities, not facts
The White House will make a decision on Lutnick's departure in the short term.
Likely · Within days
The United States may resume updating its trade blacklist and include more Chinese companies
Possible · Within weeks
Open Questions
- Will the White House eventually replace Lutnick?
- Will the spy suspicion between Huang Renxun and Huang Le be further investigated?
- Will the United States resume updating its trade blacklist?
