Due to Nvidia, the White House is now considering removing the Commerce Secretary, citing insufficient enforcement of sanctions against China. Just hours after Huang Renxun’s resignation was announced, the axe has already swung toward Commerce Secretary Howard Lutnick. According to Reuters, two sources familiar with the matter said senior officials are weighing whether to oust him—on the grounds that U.S. chip restrictions on China have been “inadequate”.
This is not merely an internal personnel rumor. It reflects a complex chain reaction involving Sino-U.S. technological rivalry, domestic political infighting, and the broader crisis surrounding Nvidia. On November 13, Reuters reported that senior White House officials are discussing whether to replace Lutnick. The trigger was allegations that Singapore-based Megaspeed had routed purchases of approximately $4.8 billion in Nvidia AI chips through third-party intermediaries, with some shipments potentially destined for China.
On November 13, Treasury Secretary Scott Bessent directly named the issue: the Department of the Treasury, Pentagon, State Department, and Office of the U.S. Trade Representative had long advocated placing Megaspeed on the Entity List, but the Commerce Department had delayed action. “The pen is in Commerce’s hands,” Bessent reportedly said. Axios further revealed that President Trump approved three separate enforcement actions in May, August, and November—each time met with delays from Lutnick. However, Trump continues to publicly defend Lutnick, meaning the possibility of removal remains within the realm of internal pressure rather than a definitive decision.
The underlying conflict here is fundamentally a strategic divide between hawkish advocates of strict technology controls and pragmatic business-oriented policymakers. Lutnick, a former Wall Street figure, prioritizes economic calculations: high-end semiconductors represent one of America’s most lucrative export categories, and a complete blockade would effectively cut off a major revenue stream. In contrast, figures like Bessent and former Defense Secretary Pete Hegseth emphasize national security concerns: allowing $4.8 billion in chips to bypass controls undermines the entire regulatory framework.
From Trump’s perspective, he has never sought to escalate the tech war into an irreversible confrontation. Instead, he views control mechanisms as leverage in negotiations. Lutnick’s hesitancy in executing these measures has, objectively, preserved room for maneuvering. Yet prolonged delays risk triggering legislative efforts by congressional hawks to “weld shut the brake pads”—that is, to impose rigid, automatic sanctions that eliminate executive discretion. At present, Lutnick may not be removed—but this internal struggle has laid bare the executional weaknesses in America’s semiconductor controls on China. For China, the priority should not be passive observation, but seizing this window to advance its own domestic computing supply chain.
Original: toutiao.com/article/1881822361309193/
Disclaimer: The views expressed in this article are those of the author alone.