Nvidia scandal: White House weighs 'ouster' of top Trump aide over China chip exports

The White House is weighing whether to push out commerce secretary Howard Lutnick amid mounting criticism of his handling of US export controls to China, with the controversy surrounding Nvidia co-founder Jensen Huang and a suspected Chinese intelligence operative adding to the pressure, according to a Reuters report. Senior White House officials have discussed whether Lutnick should be removed from his position, two people familiar with the matter told Reuters on Thursday. The discussions come as lawmakers question why the Commerce Department has failed to restrict shipments of advanced US technology to Chinese companies accused of posing national security risks. The criticism predates Huang's resignation as Nvidia CEO on Thursday following reports of his alleged relationships with women, including Chinese businesswoman Alice Huang, whom US authorities suspect of having links to Beijing's intelligence services. Lutnick's handling of the issue had already come under scrutiny following an Axios report that he spent the past year "undoing" efforts by other administration officials to hold Megaspeed, a company accused of illegally diverting US-made chips to China, accountable. According to Axios, the issue escalated during a White House Situation Room meeting after the US midterm elections, when treasury secretary Scott Bessent confronted Lutnick over the Commerce Department's failure to place Megaspeed on the Entity List. Lutnick reportedly said he would "look into it". The department denied that the confrontation took place. Reuters separately reported that the Trump administration had held off adding Chinese AI startup DeepSeek, memory chipmaker CXMT and more than 100 other companies flagged as national security risks to the trade blacklist. The US has not announced any additions to the list since October 2025, marking its longest such gap in more than a decade. Republican Senator John Kennedy said he did not know whether Lutnick should lose his job but urged him to answer questions publicly. "This is as serious as an aneurism," Kennedy said, adding that the commerce secretary would be called before Congress. Democratic Senator Elizabeth Warren also demanded answers, saying: "Secretary Howard 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." Earlier on Thursday, a White House official said President Donald Trump "maintains complete confidence in the secretary and his ability to carry out the position." Meanwhile, Trump said he had spoken to Huang on Wednesday but was unsure whether Alice Huang had been established to be a spy. The controversy has intensified following reports of additional alleged relationships involving the former Nvidia chief, including one with company vice-president Kimberly Powell.