Commerce Secretary Howard Lutnick has pushed to weaken proposed chip export rules covering Southeast Asian data centers. Some of those facilities are clients of his former firm, Cantor Fitzgerald. The overlap has raised questions about conflicts of interest.
The rules would govern advanced AI chips sold through third countries. Southeast Asia has become a key route for such hardware. Officials are weighing tighter controls on those shipments.
Lutnick has argued for a narrower version of the restrictions. People familiar with the talks say he sought exemptions for certain data center operators. His former firm maintains business ties to several of them.
Cantor Fitzgerald built a large presence in technology and data center finance. The firm’s clients include operators across Southeast Asia. Lutnick led the firm before joining the administration.
Ethics rules require officials to recuse from matters affecting former employers. It is unclear whether Lutnick has stepped back from these deliberations. The Commerce Department has not commented publicly.
The debate comes as Washington tightens scrutiny of AI chip flows. Nvidia and other suppliers face limits on sales to certain regions. Enforcement depends on rules still being finalized.
Critics say the proposed changes could open a loophole. Supporters argue the original rules were too broad and would hurt allies. The final policy is expected in the coming weeks.
