Scoop: Lutnick stalled curbing Nvidia chip sales to China — again — after Oval Office showdown

President Trump on Thursday authorized a crack down on companies suspected of diverting Nvidia's advanced AI chips to China for the third time this year — even consulting Elon Musk before giving the go-ahead. One administration official has repeatedly stood in the way: Commerce Secretary Howard Lutnick. Why it matters: This standoff illustrates a breakdown in efforts to keep American technology out of China's hands as the world wonders why the Trump administration has not taken action against the company at the center of suspected chip smuggling — and an espionage scandal. This report was assembled from interviews with six high-level sources who were briefed on or, in some cases, heard the discussions. Inside the room: On Thursday, as the spy scandal rocked the administration, Lutnick met in the Situation Room with Treasury Secretary Scott Bessent, Defense Secretary Pete Hegseth, U.S. Trade Representative Jamieson Greer and National Security Adviser and Secretary of State Marco Rubio. During the meeting, Bessent confronted Lutnick about why his department has resisted implementing the export controls, particularly on Megaspeed, the company at the center of the spy scandal. The group sided with Bessent. Lutnick appeared to agree, but then muttered under his breath, "I need to check with the president." Friction point: Lutnick's seemingly innocuous comment raised concerns, the sources said, because officials have repeatedly believed the Commerce Department would impose the export controls, only to have nothing happen. "He's stalling it out," said one official, describing how Lutnick had previously met privately with the president to change his mind about the export limit. "This is an ongoing concern with Howard and this issue," said another. This time , one person in the room called his bluff by saying: "Great. Why don't we do it today?" Around 5pm, the group headed to the Oval Office. Trump called tech advisor Elon Musk and agreed to move forward. Musk supported Rubi