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<v Speaker 1>Hey there, I'm ting and welcome to Beijing. Bites, your

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<v Speaker 1>go to source for the latest on the US China

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<v Speaker 1>tech war. Let's dive right in. Over the past two weeks,

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<v Speaker 1>we've seen some major developments that are heating up the

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<v Speaker 1>tech competition between these two superpowers. First off, cybersecurity incidents

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<v Speaker 1>are on the rise. Just yesterday, the US Treasury Department

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<v Speaker 1>sanctioned Beijing based Integrity Technology Group, Incorporated for its role

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<v Speaker 1>in multiple computer intrusion incidents against US victims. These incidents

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<v Speaker 1>have been linked to flax Typhoon, a Chinese malicious state

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<v Speaker 1>sponsored cybergroup that's been active since at least twenty twenty one,

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<v Speaker 1>targeting organizations with the US critical infrastructure sectors. But that's

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<v Speaker 1>not all. The Biden administration has been pushing for more

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<v Speaker 1>mandatory cybersecurity protocols, especially after the recent breach of nine

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<v Speaker 1>US telecommunications providers by the Salt Typhoon group, which has

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<v Speaker 1>given the Chinese government broad access to Americans DA data.

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<v Speaker 1>Outgoing FBI Director Christopher Ray called it the most significant

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<v Speaker 1>cyber espionage campaign in history. Four Now, let's talk about

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<v Speaker 1>new tech restrictions. The incoming Trump administration is expected to

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<v Speaker 1>intensify the US's tough on China technology policy approach, expanding

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<v Speaker 1>the scope of controlled technologies. This could create revenue risks

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<v Speaker 1>for manufacturers exporting to China, especially in the semiconductor industry.

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<v Speaker 1>Capstone analyst Ian Tang predicts that the Trump administration will

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<v Speaker 1>implement stricter and more expansive controls, driving a harder line

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<v Speaker 1>with allies on enforcement too. These policy changes are already

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<v Speaker 1>having industry impacts. The Treasury Department's Outbound Investment Program, which

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<v Speaker 1>went into effect on January second, twenty twenty five, restricts

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<v Speaker 1>US capital investments in certain advanced technologies linked to China.

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<v Speaker 1>This could affect firms like Semi c which have benefited

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<v Speaker 1>from lax application of you export controls in the past.

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<v Speaker 1>So what does this mean for both nations? While experts

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<v Speaker 1>like David Sedney, former Deputy Assistant Secretary of Defense believe

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<v Speaker 1>that things are going to get much worse before they

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<v Speaker 1>get any better, the Chinese government is likely to restrict

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<v Speaker 1>access to US consumer electronics, primarily smartphones, within China's border

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<v Speaker 1>to reduce foreign technology dependents. This could threaten technology companies

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<v Speaker 1>like Apple and Microsoft that are reliant on Chinese end markets.

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<v Speaker 1>In conclusion, the US China tech war is heating up,

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<v Speaker 1>with cybersecurity incidents on the rise, new tech restrictions in place,

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<v Speaker 1>and policy changes that are having significant industry impacts. As

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<v Speaker 1>we move forward, it's clear that both nations are taking

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<v Speaker 1>a more aggressive stance, and it's anyone's guess what the

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<v Speaker 1>future holds. Stay tuned for more updates on Beijing Bytes.

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