Senior White House officials are discussing whether Commerce Secretary Howard Lutnick should leave his post amid growing scrutiny over US exports of advanced Nvidia chips to China, Reuters reported, citing two people familiar with the matter.
The discussions come as lawmakers question the administration’s handling of Chinese companies suspected of posing national security risks. Criticism of Lutnick has intensified following the resignation of former Nvidia’s former CEO Jensen Huang, whose reported relationship with an executive linked to a Singapore-based chip buyer has raised further concerns.
The White House previously said President Donald Trump “maintains complete confidence in the secretary and his ability to carry out the position.”
Lawmakers question China’s access to AI chips
Several lawmakers have accused the Commerce Department of failing to tighten restrictions on Chinese technology companies. In June, Reuters reported that the administration had delayed adding DeepSeek, memory chipmaker CXMT and more than 100 other companies to a US trade blacklist.
Also Read: Jensen Huang resigns as Nvidia CEO amid Alice Huang affair controversy
Republican Senator John Kennedy said he was not yet certain whether Lutnick should lose his job but insisted that the secretary must answer questions before Congress.
Senator Elizabeth Warren also called on Lutnick and other officials to explain why export control loopholes remained open. She and Democratic Senator Chris Coons urged the administration to preserve documents concerning Nvidia’s chip exports to China.
Nvidia sales face fresh scrutiny
Democratic lawmakers Ron Wyden and Richard Neal have separately launched an inquiry into the administration’s approval of Nvidia’s advanced AI chip sales to Chinese companies. They raised concerns about buyers with alleged links to China’s government, military and sanctioned entities.
Also Read: Alice Huang linked to businesses that worked with Nvidia’s Chinese competitor Huawei: Report
The lawmakers also questioned Trump’s reported decision in December 2025 to allow Nvidia to sell its H200 chips to China in exchange for a share of the export revenue, describing the arrangement as “an unconstitutional export tax.”
Meanwhile, Republican Senator Tom Cotton urged Lutnick to block Chinese chipmaker CXMT from accessing the US market and American technology.