By David Shepardson and Lanh Nguyen
WASHINGTON (Reuters) – The Senate Commerce Committee said on Wednesday it will hold a hearing on January 29 on President Donald Trump's nominee to lead the Commerce Department, the agency that has become a key U.S. tool in its efforts to restrict China's technology sector.
Trump appointed Wall Street CEO Howard Lutnick to lead the department and his trade and tariff strategy. Trump said last year that Lutnick, president of brokerage firm Cantor Fitzgerald, would also take “additional direct responsibility” for the US Trade Representative's office.
Lutnick also manages and chairs BGC Brokerage Group Newmark Group (NASDAQ:), a commercial real estate services company, and FMX, a platform owned by some of the largest banks and traders on Wall Street.
In a document seen by Reuters, Lutnick said that if confirmed, he would resign from his positions at Cantor, BGC and Newmark and dispose of assets, including his interests in those entities.
Lutnick, who is worth $1.5 billion, according to Forbes, also filed an extensive financial disclosure form detailing his holdings.
The Commerce Department oversees a wide range of functions with nearly 47,000 employees, from the U.S. Census Bureau to weather forecasting, ocean navigation and investment promotion.
The trade authority imposed export controls on sensitive US technologies has put it at the center of trade conflicts with China, as well as investigations into anti-dumping and anti-subsidy issues that often lead to punitive tariffs to protect domestic industries.
Fearing that Beijing would weaponize American technology to bolster its military, the Trump and Biden administrations have aggressively used the powers of the Commerce Department to impose regulations to stem the flow of American and foreign technology to China — with a particular focus on semiconductors and the equipment used to manufacture them. they.
Over the past two years, the United States has issued sweeping export controls on advanced chips and chipmaking equipment to China, limiting its access to advanced AI chips and equipment needed to produce next-generation semiconductors.
In Biden's final days in office, Trade imposed greater restrictions on exports of artificial intelligence chips and technology, finalized rules effectively barring nearly all Chinese cars and trucks from entering the U.S. market, and said Trump should consider banning all Chinese drones. This week, Trump rescinded an executive order on AI safety that Biden signed in 2023.
