By Alexandra Ulmer
WASHINGTON (Reuters) -U.S. President-elect Donald Trump is expected to pick Wall Street firm Cantor Fitzgerald’s CEO, Howard Lutnick, to serve as commerce secretary, two Trump allies with knowledge of the decision said on Tuesday, where he would oversee the agency that has become the weapon of choice against China’s tech sector.
With Lutnick, Trump would be tapping a long-time friend who backs the Republican’s vision to bring manufacturing jobs back to the U.S. and promote the adoption of cryptocurrency.
The Commerce Department oversees a hodgepodge of disparate functions, from regulating ocean navigation to undertaking the census. But its oversight of American export controls has thrust it into the center of the U.S.-China tech war.
The Trump transition team did not immediately respond to a request for comment. Punchbowl first reported the news. A spokesperson for Lutnick declined to comment. Trump has changed his mind on cabinet positions in the past and sources warned the nomination is not final until the official announcement.
Fearing Beijing could weaponize American technology to strengthen its military, both the Trump and Biden administrations have used Commerce Department authorities aggressively to impose regulations to halt the flow of U.S. and foreign technology to China – with a special emphasis on semiconductors and the equipment used to make them.
Unlike other members of Trump’s inner circle, Lutnick does not speak about China often. He is a big proponent of tariffs, especially aimed at China. According to the New York Times (NYSE:), the investment banker said in a podcast interview last month: “Don’t tax our people. Make money instead. Put tariffs on China and make $400 billion.”
Cantor Fitzgerald has offices in Hong Kong. Last year, it underwrote Chinese biotech firm Adlai Nortye’s NASDAQ IPO, the first successful Chinese company to list since Beijing implemented new rules requiring Chinese firms to obtain a special filing before listing shares overseas.
The next commerce secretary will be responsible for enforcing a range of rules put in place to hamper China’s development of artificial intelligence and keep some of its biggest tech firms, including Huawei Technologies and Semiconductor Manufacturing International, several steps behind their global competition in key technologies.
As co-chair of Trump’s transition team, Lutnick had been seen for weeks as a possible candidate for a position in the Trump administration, including Treasury secretary.
A native of New York City’s Long Island suburbs with a background in trading and real estate, Lutnick has been one of Trump’s top Wall Street advocates, hosting fundraisers and touting his policies in the media.
