US Lawmakers Demand Commerce Secretary Howard Lutnick Testify Over Nvidia Chip Sales to China, Raising National Security Concerns
US lawmakers are intensifying pressure on Commerce Secretary Howard Lutnick to testify before Congress over the Trump administration’s handling of advanced Nvidia artificial intelligence chip exports and alleged diversion of sensitive American technology to China. The controversy has widened following the resignation of Nvidia co-founder Jensen Huang and growing questions about the federal government’s oversight of semiconductor exports.
On November 13, 2026, Senate Banking Committee Chairman Tim Scott called on Lutnick and former Nvidia CEO Jensen Huang to appear before lawmakers at a public oversight hearing scheduled for December 3. Scott warned that the committee could issue subpoenas if either individual refused to cooperate voluntarily. The proposed testimony is intended to examine national security concerns surrounding Nvidia’s business activities, Chinese technology connections and the enforcement of American export restrictions.
The investigation centres on Megaspeed International, a Singapore-based data-centre company that reportedly obtained advanced Nvidia AI processors despite restrictions on exporting certain American semiconductor technologies to China. US intelligence officials have raised concerns about the company’s connections with Alice Huang, an executive associated with Megaspeed who is suspected of having links to Chinese intelligence activities.
American authorities are also examining allegations that Nvidia chips supplied to Megaspeed may have been diverted to China through unauthorised channels. Such diversion would potentially undermine US export controls designed to prevent China’s military and technology sectors from accessing advanced American computing capabilities. Megaspeed has denied wrongdoing, and the allegations remain under investigation.
Howard Lutnick is facing scrutiny over why the Commerce Department did not move more quickly to restrict Megaspeed’s access to advanced semiconductor technology. Reports indicate that officials within the department had previously examined concerns involving the company, but efforts to place it on the government’s Entity List were reportedly delayed or halted.
The Entity List is maintained by the US Department of Commerce and identifies foreign organisations subject to additional export restrictions because of national security or foreign policy concerns. Adding Megaspeed to the list could significantly restrict its ability to purchase American technology without special government authorisation.
The controversy has created political pressure on the Trump administration, particularly because Nvidia’s advanced processors are considered strategically important to America’s leadership in artificial intelligence. Lawmakers want to establish whether government officials adequately assessed intelligence warnings and whether commercial interests influenced decisions concerning semiconductor exports.
Republican lawmakers have joined Democrats in demanding explanations. Senate Banking Committee Chairman Tim Scott has argued that recent revelations raise serious questions about national security and the protection of sensitive American technology. Other Republican senators have also indicated that both Lutnick and Nvidia representatives should answer questions before congressional committees.
Democratic senators Elizabeth Warren and Chris Coons have separately called on the Commerce Department, the State Department and the White House to preserve documents, communications and other records concerning Nvidia’s chip exports to China and the reported intelligence operation involving Huang. They have requested written confirmation that the relevant records are being protected.
The House of Representatives is also preparing its own investigation. Three congressional committees, including the House Foreign Affairs Committee, the House Intelligence Committee and the Select Committee on China, have sought testimony from Huang behind closed doors on December 1. Nvidia General Counsel Tim Teter has also been asked to appear on December 2. Lawmakers have warned that subpoenas could follow if the requested cooperation is not provided.
Commerce Department Under Secretary Jeffrey Kessler, who oversees the Bureau of Industry and Security, is also expected to face congressional questioning about the administration’s export-control policies. The agency plays a central role in regulating the international sale of advanced American semiconductor technology.
Meanwhile, the controversy has intensified scrutiny of the relationship between Nvidia and the Trump administration. Huang had maintained close contact with President Donald Trump and had advocated allowing American semiconductor companies to retain access to important international markets, including China. Lawmakers are now seeking clarity about whether those relationships affected government decisions concerning chip exports.
The Chinese government has rejected allegations of espionage and criticised Washington’s approach to semiconductor restrictions. Beijing has argued that the United States should not use unsubstantiated national security claims as justification for restricting China’s technological development. The dispute adds another layer of tension to the already complicated US-China technology relationship.
Financial markets have also been watching the developments closely. Nvidia shares have faced selling pressure following Huang’s departure and the growing political controversy. Investors are concerned that stricter export restrictions, additional investigations and uncertainty surrounding the company’s leadership could affect its international business operations.
The congressional hearings could have significant consequences for America’s semiconductor export policy. Lawmakers are considering stronger restrictions on advanced AI processors, improved tracking of exported chips and additional safeguards to prevent sensitive technology from reaching unauthorised destinations.
At the centre of the investigation is a broader question: whether the United States has sufficient mechanisms to monitor the international movement of its most advanced artificial intelligence technology. With Nvidia processors powering major AI infrastructure projects worldwide, the outcome could influence not only the company’s future but also the direction of Washington’s technology and trade policies towards China.
As congressional scrutiny intensifies, Howard Lutnick is facing growing demands to explain the Commerce Department’s decisions, the handling of intelligence warnings and the government’s response to suspected chip diversion. The December 3 hearing is expected to become a significant moment in the unfolding controversy, although the final scope of the investigation and any potential legal consequences remain uncertain.
