Bessent blames US Commerce Department for not restricting Nvidia chips to China - South China Morning Post

The public friction between the Treasury and Commerce Departments signals a shift from administrative enforcement to political maneuvering in US-China chip controls. This is not mere bureaucratic infighting but a violent recalibration of Washington's cost-benefit analysis regarding technological decoupling. For Nvidia, compliance costs will escalate exponentially, forcing the firm to engage in high-risk arbitrage between conflicting regulatory logics, thereby stressing supply chain resilience. Competitors like AMD and local Chinese players will exploit this policy volatility to accelerate substitution, leveraging customized architectures to bypass general compute restrictions. Over the next 12-24 months, export controls will fragment; single-product definitions will fail, giving way to precise, software-stack-based blockades. This policy whiplash undermines the credibility of US tech hegemony and compels the global semiconductor supply chain to restructure rapidly, forming parallel market systems defined by geopolitical boundaries rather than economic efficiency.