Speaker 1: Welcome back listeners to another download of Beijing bites US
Speaker 1: China tech war updates. I'm ting your favorite cyber sleuth
Speaker 1: with a soft spot for semiconductors and sarcasm. Let's plug in.
Speaker 1: The rivalry has network congestion and the packets are flying.
Speaker 1: The last two weeks in tech warfare, who even by
Speaker 1: US China standards, It's been a bonanza of bands, cyber
Speaker 1: hyphen scuffles, and policy whiplash. Let's start with the silicon
Speaker 1: soap opera. In Vidia, led by Jensen Juan, is once
Speaker 1: again dancing on the razor edge between profit and protectionism.
Speaker 1: After screaming headlines earlier this summer over US chip export bands,
Speaker 1: in Vidia rolled out the H twenty, a watered down
Speaker 1: AI chip designed specifically to skate under UIs restrictions and
Speaker 1: keep the wine rolling in but not so fast. US
Speaker 1: Commerce Secretary Howard Lutnik went on air and basically said, listen,
Speaker 1: China's not even getting the second best stuff. It's all
Speaker 1: about American supremacy and tech addiction. Queue the regulatory thunder.
Speaker 1: Beijing took offence, ordered its tech darlings to scale back
Speaker 1: in video orders, and doubled down on pushing homegrown chip champions.
Speaker 1: Expect more made in China chips baked fresh by SMIC
Speaker 1: and Huawei, with deep seek Ai leading the charge in
Speaker 1: efficient proprietary silicon. All this is in VideA and A
Speaker 1: and D make a once unthinkable deal a fifteen percent
Speaker 1: revenue kick back to Uncle Sam from Chinese chip sales
Speaker 1: just to get export licenses, setting a wild new precedent
Speaker 1: in how Washington monetizes tech depharmacy. Swinging to cyber, it's
Speaker 1: been a pressure cooker. The China linked silk Typhoon APT
Speaker 1: group also known as Murky Panda, is ramping up zero
Speaker 1: day and en day exploit attacks across North America, with
Speaker 1: Crowdstride and others warning of their incredible targeting scope. Meanwhile,
Speaker 1: in the courts, a Chinese developer named David Liu was
Speaker 1: slapped with a four year US jail sentence for a
Speaker 1: sabotage stunt at Eaton Corporation. Think malicious code, delayed server deaths,
Speaker 1: and a kill switch for intranet carnage. The cyber battlefield
Speaker 1: is as asymmetric and personal as ever. On the policy front,
Speaker 1: the US is nuking the beloved deminimous exemption for imports
Speaker 1: under eight hundred dollars that's effective in just a few
Speaker 1: days and will hammer e commas platforms like Sheen, Temu
Speaker 1: and even Amazon, who now face higher compliance costs and
Speaker 1: full custom scrutiny. China and Hong Kong got a head
Speaker 1: start on these restrictions back in May, so now trade
Speaker 1: pain is bilateral, and legal showdowns over executive authority could
Speaker 1: drag this fight into twenty twenty seven. Perhaps the most
Speaker 1: strategic move China's unveiling of deep Seek AI open sourcing,
Speaker 1: a powerful GPT five rival built natively for local chips
Speaker 1: and price to undercut open AI globally. That resets the
Speaker 1: deck in both AI and crypto, since deep Seek's proprietary
Speaker 1: silicon is already nudging crypto mining operations toward China, threatening
Speaker 1: Western control of block two chain infrastructure, crypto and AI
Speaker 1: cold wars. Yet it's now a thing, So what do
Speaker 1: the experts say? In a nutshell, tech is now treated
Speaker 1: as state craft, not just commerce. The US is getting
Speaker 1: more interventionist, demanding a cut of the action. China's pivoting
Speaker 1: faster to self reliance, shepherding domestic winners and ring fencing
Speaker 1: data flows, even as it faces compliance headaches from those
Speaker 1: same protective moves. Investors are hedging and innovators are speed
Speaker 1: running the decoupling marathon. Forecast tensions will escalate, more fragmentation,
Speaker 1: twin technology ecosystems, and a constant tug of war between
Speaker 1: control and progress. Think Cold War with faster Wi Fi
Speaker 1: and more zero days. Thanks for tuning in to Beijing Bites.
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