White House weighs Lutnick role over Megaspeed controls
HK01 · 5 SOURCESabout 8 hours ago2 MIN
Summary
The dispute over whether to impose US export controls on Megaspeed has escalated from a chip-enforcement issue into a broader political fight inside the Trump administration. Reports say Commerce Secretary Howard Lutnick resisted or delayed action despite repeated pressure from other senior officials and directives from President Donald Trump, arguing that a move could trigger a new trade war with China. Reuters, cited by multiple outlets, said White House officials are now discussing whether Lutnick should be replaced, although no final decision has been made and one White House official said Trump still has confidence in him.
Key Points
- Axios reported that Trump ordered export controls on Megaspeed, but Lutnick opposed and delayed them, saying the move could reignite a US-China trade war.
- Officials said a White House meeting last Thursday included Marco Rubio, Scott Bessent, Pete Hegseth and Jamieson Greer, with most backing immediate controls.
- Reuters reported on Friday that senior White House officials were discussing whether Lutnick should be removed, though no final decision had been reached.
- Treasury Secretary Scott Bessent said on CNBC on Saturday that Treasury, Defense, State and the US Trade Representative had supported restricting Megaspeed for months.
- Megaspeed said on Thursday it takes US export-control compliance “very seriously” and has cooperated with US investigations into the matter.
Why It Matters
For Hong Kong readers, the immediate consequence is the risk of tighter US controls on advanced chips, cloud access and related enforcement, which sources said has already unsettled China technology shares and raised concerns over AI computing supply. If Washington closes more loopholes and intensifies scrutiny of intermediaries and end-users, Chinese cloud providers and AI developers could face slower research progress and more supply-chain disruption.