The Trump administration’s effort to stop companies from illegally diverting Nvidia artificial intelligence chips to China has reportedly faced repeated delays from US Commerce Secretary Howard Lutnick. The reported resistance has raised fresh questions about Washington’s commitment to enforcing export controls on advanced technology.
According to a report published Wednesday, Lutnick has repeatedly blocked or slowed President Donald Trump’s plans to take action against companies suspected of sending restricted Nvidia chips to China. The report cited several senior sources familiar with the matter.
Trump reportedly approved another crackdown last Thursday. It was the third time this year that the president had authorized efforts to target companies suspected of diverting the chips. The report also said Trump consulted billionaire Elon Musk before giving the latest approval.
However, the administration’s plans have not moved forward as expected. Lutnick has reportedly stood in the way of implementing the proposed measures, creating disagreements within the government over how strictly export rules should be enforced.
The White House and a spokesperson for Lutnick did not immediately respond to requests for comment.
The reported dispute came to a head during a meeting in the White House Situation Room last Thursday. Lutnick met with Treasury Secretary Scott Bessent, Defense Secretary Pete Hegseth, US Trade Representative Jamieson Greer and Secretary of State Marco Rubio.
During the meeting, Bessent reportedly challenged Lutnick over resistance within the Commerce Department to implementing export controls. Lutnick appeared to agree with the need for action but said he would first need to consult Trump, according to the report.
The disagreement highlights a wider debate within the US government over how to prevent sensitive American technology from reaching China. Advanced Nvidia processors are widely used to develop artificial intelligence systems and are considered strategically important because of their potential commercial and military applications.
Washington has introduced restrictions to limit China’s access to powerful AI chips. US officials have argued that controlling the export of advanced processors is necessary to protect national security and maintain America’s technological advantage.
Several lawmakers have recently called for a tougher approach. They want the Trump administration to take stronger action against companies suspected of helping restricted chips reach Chinese buyers. Some have also urged Congress to pass new legislation that would tighten export restrictions.
The renewed pressure follows disclosures involving Nvidia chief executive Jensen Huang. The company’s board has reportedly launched an investigation after reports that Huang had a close relationship with a Chinese businesswoman whom US intelligence officials suspected of spying for Beijing.
The allegations have increased scrutiny of Nvidia’s business activities and its links to China. They have also prompted questions about whether existing export controls are strong enough to prevent sensitive technology from being transferred through third parties.
Nvidia has not been accused in the supplied report of directly violating export rules. The central concern is whether companies and intermediaries may be diverting restricted processors to buyers in China despite US controls.
The latest dispute is not the first time the Trump administration has delayed action against Chinese technology companies. In June, reports revealed that the government had held back plans to add China’s artificial intelligence startup DeepSeek, memory chipmaker ChangXin Memory Technologies, also known as CXMT, and more than 100 other companies to the US trade blacklist.
Those companies had been flagged as potential national security risks. Adding them to the Entity List would have imposed further restrictions on their ability to obtain American technology and products without government approval.
The United States has not announced any new additions to the Entity List since October 2025. The gap represents the longest period without new entries in more than a decade.
The lack of new listings has raised questions about the pace of the administration’s efforts to restrict technology transfers to China. It also suggests that disagreements over trade, national security and commercial interests may be affecting the implementation of US policy.
The Commerce Department plays a central role in enforcing export controls and deciding which companies face restrictions. Any delay in carrying out approved measures could weaken efforts to prevent sensitive chips from reaching restricted buyers.
For the Trump administration, the challenge is balancing commercial interests with national security concerns. Nvidia remains a major supplier of AI processors, while China continues to seek access to advanced computing technology.
The reported disagreement between Lutnick and other senior officials could therefore have wider consequences for US technology policy. Lawmakers are likely to continue pressing the administration for stronger action, while questions remain over when the latest crackdown will be implemented.
For now, the proposed measures remain subject to internal government discussions. The extent of Lutnick’s role and the final decisions by Trump have not been publicly confirmed.
