The White House on Thursday said President Donald Trump continues to back Howard Lutnick, as the Commerce Secretary faces criticism from Capitol Hill after reports that he delayed action to curb chip smuggling.
There were also concerns about whether the government was properly overseeing Nvidia chip exports to China.
The New York Times reported on Wednesday that the Commerce Department did not take action against the Singapore-based firm Megaspeed, which is at the heart of the Nvidia scandal that led to Jensen Huang's resignation as chief executive.
Mr Huang resigned from the company he founded in 1993, days after a bombshell report about an extramarital affair with Alice Huang, a Megaspeed executive who is suspected by US intelligence officials of being a Chinese agent. He and Ms Huang are not related. And the report predated Mr Huang's resignation.
“Secretary Howard Lutnick and undersecretary Jeffrey Kessler must explain why they have not closed export control loopholes and act today to ensure our advanced technology is not fuelling China’s military,” said Democratic Senator Elizabeth Warren, who is set to become chairwoman of the banking committee.
Republican Senator John Kennedy told Politico Mr Lutnick must answer questions about approving advanced chip sales to China.
A White House official said Mr Trump “maintains complete confidence in the Secretary and his ability to carry out the position as the most transformative Commerce Secretary in modern history”.
The Commerce Department did not immediately respond to The National's request for comment.
Democrats were already expected to place greater scrutiny on Mr Lutnick's tenure after they won both chambers of Congress during last week's US midterm elections. This includes his relationship with cryptocurrency firm Tether and US-backed deals involving mining companies USA Rare Earth and Vulcan Elements.
Mr Huang's affair has become a political firestorm, as the former Nvidia chief executive was outspoken in opposing strict US export controls on advanced chips to China.
Tom Cotton, who chairs the Senate intelligence committee, pressed Mr Lutnick to restrict China's memory chip maker CXMT on the US market and prevent it from having a stronger foothold in the global market, CNBC reported.
The Commerce Department last added a company to its trade restriction list, known as its Entity List, in October 2025. CXMT is on the Pentagon's 1260H list, which identifies companies tied to China's military.
Congress is also looking at measures that would push for stricter chip controls. Senate minority leader Chuck Schumer on Tuesday pushed for a bipartisan effort to pass legislation including the AI Overwatch Act, the Match Act and the Chip Security Act, “to cut off China's access to advanced American technology before it's too late”.
"I’ve been saying it for years: our cutting-edge AI chips are too valuable to fall into the hands of potential adversaries,” Mr Schumer said.
Republican Representative Brian Mast, chairman of the House foreign affairs committee, said Mr Huang will testify before Congress this month. Mr Mast told reporters he has not yet ruled out a public hearing.
“Despite Jensen Huang’s resignation, Congress must demand answers from Mr Huang and others at Nvidia about how they may have put US national security at risk,” Mr Schumer posted on X.
Nvidia is due to report its quarterly earnings next week. Shares in the company were down 4.50 per cent on Wednesday.
