Bipartisan Push for Lutnick Testimony Intensifies After White House Weighs His Removal

Key points

• Sen. Jim Banks, R-Ind., called for Lutnick to testify 'ASAP' before the Senate Banking Committee, alleging the Secretary used loopholes to allow chip sales despite presidential directives against them.
• Banks and other lawmakers, including Sen. Elizabeth Warren and Sen. Chris Coons, have demanded the preservation of all documents related to Nvidia’s AI chip exports and national security risks.
• The New York Times and Axios report that Lutnick resisted tightening export controls on Megaspeed, a Singaporean data center company owned by Alice Huang, on at least three occasions over the past year.
• Treasury Secretary Scott Bessent confronted Lutnick during a recent White House meeting regarding why Megaspeed was not blacklisted, while the Commerce Department referred a probe into the firm to the Justice Department.
• Reuters reports that senior White House officials are discussing whether to oust Lutnick amid the growing criticism, although an unnamed official stated President Trump maintains complete confidence in the Secretary.

Background

This development follows the resignation of Nvidia CEO Jensen Huang on November 12, 2026, after revelations of affairs with Alice Huang, an alleged Chinese spy, and an Nvidia executive. The scandal triggered a significant drop in Nvidia’s market value and prompted multiple congressional committees to seek Huang’s testimony. Lutnick’s actions have been scrutinized for potentially allowing advanced AI chips to reach Chinese entities via Megaspeed, bypassing U.S. restrictions, despite prior warnings and classified memos regarding the security risks.

Why it matters

The situation highlights a significant internal conflict within the Trump administration regarding the enforcement of technology export controls. If Lutnick is removed or forced to testify, it could signal a shift in the administration’s approach to national security and trade policy, potentially affecting global supply chains for AI chips and U.S.-China relations. The bipartisan nature of the criticism suggests that the issue has transcended typical partisan divides, focusing instead on the integrity of U.S. technology safeguards.

What to watch

Lutnick is expected to face formal congressional inquiries, potentially including a subpoena if he does not voluntarily appear. The Senate Banking Committee, led by incoming chair Elizabeth Warren, is likely to lead the investigation into the administration’s handling of Nvidia’s chip exports. The White House may make a final decision on Lutnick’s position in the coming days as pressure from both parties continues to build.