US officials question why Megaspeed is not on the Entity List

In short: Reports say Treasury Secretary Scott Bessent challenged Commerce Secretary Howard Lutnick about why Megaspeed was not added to a key US export restriction list.

What happened

Treasury Secretary Scott Bessent reportedly confronted Commerce Secretary Howard Lutnick last week during a White House Situation Room meeting. The question was why Singapore-based Megaspeed had not been placed on the Commerce Department’s Entity List.

The Entity List is a US government list that can limit what American companies are allowed to sell to certain foreign groups. In many cases, US exporters must get a license before shipping “controlled” goods, meaning sensitive items that can be used for military or surveillance purposes (like high-end computer chips).

According to Axios, Lutnick said he would look into the issue. The New York Times reported that Lutnick suggested the Commerce Department could move quickly to impose restrictions.

Megaspeed has been accused of diverting advanced Nvidia chips to China, which would break the intended rules for where those chips can end up. Megaspeed denies the allegations. The reports said Megaspeed was still not on the Entity List.

Nvidia said it independently stopped sales and shipments to Megaspeed in June 2025.

Why it matters

Advanced chips help power modern AI systems, and governments treat them like controlled equipment. This is similar to restricting who can buy specialized tools that could be used in a weapons factory. The reported dispute shows that even inside the US government, there can be sharp disagreements about how fast to apply export limits and which companies should be blocked.

Source: NYTimes