Treasury chief: 70% of China's new chips came from Lutnick's portfolio

Scott Bessent, the U.S. Secretary of the Treasury, stated on Saturday that his Commerce Department counterpart, Howard Lutnick, failed to prevent China from acquiring advanced chips from American companies.

Bessent made the remark during a public appearance, directly challenging the effectiveness of the current administration's trade enforcement strategies under Lutnick's oversight.

The Treasury chief claimed that 70 percent of the advanced semiconductors sold to China over the past two years originated from companies that were part of Lutnick's personal investment portfolio before he took office.

This figure, 70 percent, represents the share of specific high-tech hardware exports that Bessent identified as potentially conflicting with the administration's stated goals for limiting Beijing's access to U.S. technology.

Lutnick, who serves as the Secretary of Commerce, has overseen the agency responsible for maintaining export control lists and coordinating with the State Department on technology transfers.

Bessent argued that the failure to stop these sales undermines the credibility of the White House's message to foreign partners and domestic industry alike.

The statement marks a notable public disagreement between two senior cabinet members who both report directly to President Donald Trump.

Bessent did not name specific companies in his initial remarks but indicated that the data came from internal reviews of export licenses granted during the last 24 months.

The dispute centers on whether Lutnick's office acted quickly enough to flag potential conflicts of interest or whether the existing bureaucratic processes were sufficient to halt the transactions.

Bessent said he raised the issue with Lutnick privately before making the comments public, noting that he believed the two ministers were aligned on the ultimate goal of protecting American intellectual property.

The Treasury secretary emphasized that the 70 percent figure was not an estimate but a calculated result from a review of transaction records.

Lutnick's office did not immediately respond to requests for comment on the specific percentage or the timeline of the chip sales in question.