WEBVTT

1
00:00:00.120 --> 00:00:03.000
<v Speaker 1>Ting here. And if you thought US China tech drama

2
00:00:03.120 --> 00:00:06.480
<v Speaker 1>was slowing down, buckle up, because the last two weeks

3
00:00:06.480 --> 00:00:09.919
<v Speaker 1>have been pure cyber chaos and trade intrigue at speeds

4
00:00:09.919 --> 00:00:14.679
<v Speaker 1>that would make a TikTok trend look sluggish. First up, cybersecurity,

5
00:00:15.560 --> 00:00:18.879
<v Speaker 1>Let's talk Salt Typhoon, the hacking group that's got every

6
00:00:19.000 --> 00:00:23.160
<v Speaker 1>US agency on red alert. According to Michael Matchinger at

7
00:00:23.160 --> 00:00:27.519
<v Speaker 1>the FBI, Salt Typhoon, linked right back to Beijing, managed

8
00:00:27.559 --> 00:00:31.719
<v Speaker 1>to infiltrate data belonging to millions of Americans through telecom networks.

9
00:00:32.200 --> 00:00:35.439
<v Speaker 1>We're not just talking your garden variety hacks here. The

10
00:00:35.520 --> 00:00:39.600
<v Speaker 1>campaign went global, over eighty countries hit with at least

11
00:00:39.600 --> 00:00:44.759
<v Speaker 1>two hundred major American organizations. Compromised Victims ranged from telco's

12
00:00:44.880 --> 00:00:47.520
<v Speaker 1>like Verizon and AT and T all the way up

13
00:00:47.560 --> 00:00:52.600
<v Speaker 1>to household political names. What's more, Beijing's reliance on domestic

14
00:00:52.640 --> 00:00:57.640
<v Speaker 1>tech firms like Sichuan Duchinhei Network Technology has backfired. As

15
00:00:57.719 --> 00:01:02.320
<v Speaker 1>pointed out by another FBI executive, the fragmented control and

16
00:01:02.439 --> 00:01:06.319
<v Speaker 1>lack of oversight in these companies gave US cyber defenders

17
00:01:06.560 --> 00:01:10.840
<v Speaker 1>breadcrumbs straight back to the source. But even with this exposure,

18
00:01:11.239 --> 00:01:16.000
<v Speaker 1>China's hacker for higher model remains reckless, and let's face it,

19
00:01:16.599 --> 00:01:21.879
<v Speaker 1>absolutely massive in scale switching from code to chips. The

20
00:01:22.040 --> 00:01:25.680
<v Speaker 1>US just yanked the special permissions that allowed Samsung and

21
00:01:25.840 --> 00:01:29.159
<v Speaker 1>s k Heinex to buy American chip making gear for

22
00:01:29.239 --> 00:01:33.079
<v Speaker 1>their China factories. These carve outers were a band aid

23
00:01:33.319 --> 00:01:37.000
<v Speaker 1>dating back to twenty twenty two, but now anyone wanting

24
00:01:37.040 --> 00:01:41.480
<v Speaker 1>advanced US tools in China needs a license. Comma says

25
00:01:41.599 --> 00:01:45.760
<v Speaker 1>existing Chinese factories will keep running, but forget about expanding

26
00:01:45.959 --> 00:01:50.000
<v Speaker 1>or importing state of the art tech. US suppliers like

27
00:01:50.079 --> 00:01:54.920
<v Speaker 1>LAMB Research and Applied Materials selt the sting immediately with

28
00:01:55.040 --> 00:01:59.920
<v Speaker 1>stock slumps for chip geeks. This means slower Chinese act

29
00:02:00.359 --> 00:02:05.200
<v Speaker 1>to advanced hardware, but ironically it also hands a juicy

30
00:02:05.239 --> 00:02:10.479
<v Speaker 1>opportunity to local Chinese equipment makers and even US rivals

31
00:02:10.560 --> 00:02:16.000
<v Speaker 1>like Micron. Tariffs. Oh yes, those are back in the spotlight.

32
00:02:16.759 --> 00:02:20.719
<v Speaker 1>The US and China did a surprise ninety day truce

33
00:02:20.919 --> 00:02:25.159
<v Speaker 1>in May, slashing tariffs to boast trade just as summer

34
00:02:25.280 --> 00:02:29.479
<v Speaker 1>was heating up. For now, US rates on Chinese imports

35
00:02:29.560 --> 00:02:33.240
<v Speaker 1>hover at thirty four percent, but with most of that suspended,

36
00:02:33.520 --> 00:02:37.560
<v Speaker 1>the effective rate for gadgets like laptops and GPUs is

37
00:02:37.759 --> 00:02:43.159
<v Speaker 1>just ten percent. China reciprocated dropping its curtain of tariffs

38
00:02:43.199 --> 00:02:48.960
<v Speaker 1>on American soybeans and machinery, but this is temporary. November

39
00:02:49.080 --> 00:02:52.639
<v Speaker 1>brings the uncertainty back. The Office of the U S

40
00:02:52.680 --> 00:02:57.080
<v Speaker 1>Trade Representative just extended exemption on China made GPUs and

41
00:02:57.159 --> 00:03:01.479
<v Speaker 1>motherboards to late November, to the relief of both gamers

42
00:03:01.479 --> 00:03:05.919
<v Speaker 1>and PC industry execs dreading a price hike disaster on

43
00:03:06.000 --> 00:03:10.039
<v Speaker 1>the Chinese side, Huawei's senior execs Syal jing Ween, just

44
00:03:10.120 --> 00:03:13.719
<v Speaker 1>pulled off a victory lap, declaring that Huawei has built

45
00:03:13.719 --> 00:03:17.840
<v Speaker 1>a computing and AI ecosystem fully independent of U S Tech.

46
00:03:18.479 --> 00:03:21.520
<v Speaker 1>Their cloud matrics three hundred and eighty four system, a

47
00:03:21.639 --> 00:03:26.639
<v Speaker 1>monster cluster delivering three hundred petaflops just came online, challenging

48
00:03:26.759 --> 00:03:30.879
<v Speaker 1>US dominance in data center power. Tao even claimed China

49
00:03:30.960 --> 00:03:33.879
<v Speaker 1>is positioned to surpass the U S in AI application,

50
00:03:34.439 --> 00:03:39.199
<v Speaker 1>riding on homegrown hardware and the country's massive business base. Meanwhile,

51
00:03:39.280 --> 00:03:43.240
<v Speaker 1>Beijing's regulators are busy minding the AI gold rush, warning

52
00:03:43.280 --> 00:03:49.479
<v Speaker 1>provinces to avoid disorderly competition. The National Development in Reform

53
00:03:49.479 --> 00:03:53.680
<v Speaker 1>Commission wants a coordinated boom, not a bubble, and desurging

54
00:03:53.719 --> 00:03:57.520
<v Speaker 1>local governments to play to their unique strengths. It's all

55
00:03:57.560 --> 00:04:01.879
<v Speaker 1>about steering investments smartly and no nurturing real innovation, not

56
00:04:01.960 --> 00:04:05.159
<v Speaker 1>just throwing funds at every AI startup that shouts GPT

57
00:04:05.439 --> 00:04:10.360
<v Speaker 1>loud enough industry impact, us hip and cloud farms are

58
00:04:10.360 --> 00:04:14.039
<v Speaker 1>evaluating exits. Chinese tech companies are on the rise, but

59
00:04:14.080 --> 00:04:18.480
<v Speaker 1>still worried about component supply restrictions and global supply chains

60
00:04:18.480 --> 00:04:22.720
<v Speaker 1>are one policy tweet away from gridlock. Experts like those

61
00:04:22.720 --> 00:04:25.879
<v Speaker 1>from Bloomberg and SCMPS say the next six months will

62
00:04:25.920 --> 00:04:29.560
<v Speaker 1>be all about resilience, decouple and the battle of national

63
00:04:29.639 --> 00:04:36.319
<v Speaker 1>champions think Huawei versus Nvidia, with regulators refereeing in between forecast.

64
00:04:36.480 --> 00:04:40.680
<v Speaker 1>Expect further retaliatory restrictions at least one box star hacking

65
00:04:40.720 --> 00:04:44.879
<v Speaker 1>report each quarter, and both sides accelerating their sprint towards

66
00:04:44.920 --> 00:04:49.759
<v Speaker 1>supply chain independence. If you're in tech, cybersecurity, or even

67
00:04:49.839 --> 00:04:52.959
<v Speaker 1>just trying to buy a graphics card, strap in, this

68
00:04:53.120 --> 00:04:56.519
<v Speaker 1>race is far from over. Thanks for tuning into beaging

69
00:04:56.519 --> 00:05:00.000
<v Speaker 1>bites with ting subscribe from All Bytes and drama from

70
00:05:00.079 --> 00:05:02.560
<v Speaker 1>the world's hottest tech war This has been a quiet

71
00:05:02.639 --> 00:05:07.240
<v Speaker 1>please production. For more check out Quiet Please dot ai