Speaker 1: Listeners, ting here your bite size portal into all things China,
Speaker 1: cyber Shenanigans, and the digital duels shaping our world. No
Speaker 1: time to warm up. Major sparks have fown in the
Speaker 1: US China tech war the past two weeks, so buckle up.
Speaker 1: Let's start hot with the breaking Microsoft SharePoint cyber drama.
Speaker 1: According to both CBS News and Microsoft, state backed Chinese
Speaker 1: threat groups line In Typhoon and Violet Typhoon breached several
Speaker 1: US government agencies, including the Department of Homeland Security and
Speaker 1: the National Institutes of Health by exploiting an unpatched share
Speaker 1: Point vulnerability. Microsoft says these attackers even managed to deploy
Speaker 1: ransomware before the patch landed. The cyber fireworks triggered multi
Speaker 1: agency responses. CAEESIA was patching and locking everything down around
Speaker 1: the clock. Microsoft, caught with its pants down, issued urgent
Speaker 1: security updates, while the White House gained out worst case scenarios.
Speaker 1: No evidence so far of stolen data from Homeland Security,
Speaker 1: but NIH and Defense Intelligence had several hours of share
Speaker 1: Point blackout. Never a good look. Meanwhile, Microsoft found itself
Speaker 1: in yet another d C dog house after a pro
Speaker 1: publica expose. The tech giant scrambled to end its long
Speaker 1: running practice of using China based engineers for U S
Speaker 1: government cloud systems, even for the Pettagon. The Defense Secretary
Speaker 1: called this an unacceptable risk, and now Microsoft sweeping the
Speaker 1: decks industry wide. The company is reviewing whether it needs
Speaker 1: even tighter controls because apparently digital escorts for foreign engineers
Speaker 1: weren't cutting it. This is amplifying the debate. Can you
Speaker 1: really safeguard American government data if it's being serviced from Hangjo?
Speaker 1: The policy blowback looks set to ripple into future contracts
Speaker 1: and cloud trust. Now let's talk hardware, because what's hotter
Speaker 1: than AI chip smuggling. Despite the Biden Trump pivot in
Speaker 1: export controls, in Nvidia H one hundred, H two hundred
Speaker 1: and yes, the turbocharged B two hundred chips worth over
Speaker 1: one billion dollars was smuggled into China since April, reports
Speaker 1: from Reuter's and tech Crunch reveal these chips, blacklisted by Washington,
Speaker 1: miraculously appeared in Shanghai and Shenzen data centers via indirect
Speaker 1: supply chains, mostly through Southeast Asia's Swiss Cheese enforcement. Nvidia
Speaker 1: disavows these sales, warning buyers about technical headaches and zero warranty,
Speaker 1: But the damage is done. Chips banned one day, show
Speaker 1: up on talboo the next, igniting a regulatory panic. In
Speaker 1: response to this enforcement fail, the US is now expected
Speaker 1: to tighten export rules again this fall, possibly even pressuring
Speaker 1: allies like Thailand and Malaysia to clamp down on re
Speaker 1: rooted shipments. The Nvidia H twenty chip ban was even
Speaker 1: briefly reversed to allow legal exports, especially after Trump's trade
Speaker 1: talks with Sheijinping hinted export controls could be used as
Speaker 1: bargaining chips in broader negotiations. Still, the B two hundred
Speaker 1: band sticks and tech supply chains stay in limbo. US
Speaker 1: firms and trading partners are now caught in a fog
Speaker 1: of policy reversals, with chip sales fluctuating based on the
Speaker 1: latest summit handshake or Twitter jab But don't think Beijing's
Speaker 1: just a bystander. The Cyberspace Administration of China rolled out
Speaker 1: new draft amendments to the cyber security law, upping the
Speaker 1: penalties for breaches to nearly seven million dollars, aligning with
Speaker 1: their newer data protection rules. The message from China keep
Speaker 1: your compliance sharp or get ready to bleed RMB. This
Speaker 1: plays hand in game love with moves restricting the export
Speaker 1: of battery TEIs and mineral know how. China is fencing
Speaker 1: off its crown jewels like cathode and lithium patents, squeezing
Speaker 1: foreign ev and green tech makers. Of course, US policy
Speaker 1: didn't stay still. Just this week, President Trump made a
Speaker 1: splash with his AID regulation plan executive orders to turbocharge
Speaker 1: American AI with deregulation, simplify data center permits, and demand
Speaker 1: a single federal standard for AI model governance. This is
Speaker 1: marketed as a culture war, fighting innovation driving package meant
Speaker 1: to outpace China by unleashing private sector might and keeping
Speaker 1: progressive policies at the margins. David Sachs, the new White
Speaker 1: House point man on AI, vows this will make America
Speaker 1: the AI export powerhouse. Whether this blitz will spark another
Speaker 1: wave in the tech arms race or just whiplash for
Speaker 1: developers is hotly de Here's the real takeaway. The US
Speaker 1: China tech war is now a digital cold war, where
Speaker 1: AI chips and cyber security define national power. Smuggled hardware,
Speaker 1: cyber sabotage, policy, whiplash, and trade blackmail are the new normal.
Speaker 1: Expect the fall to bring even tougher enforcement, more supply
Speaker 1: chain intrigue, and both sides corralling more allies think the US, Japan, Taiwan,
Speaker 1: Korea Chip four versus China's growing digital silk road. That's
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