Speaker 1: High listeners ting here hacking through the latest circuitry on
Speaker 1: Beijing bites. Buckle up, because the last two weeks in
Speaker 1: the US to China tech war have been a wild ride.
Speaker 1: Think cyber shootouts, regulatory curve balls, and a few AI
Speaker 1: bombshells big enough to shake Wall Street. Let's dive right
Speaker 1: into the action. Top of the headlines. Italian police just
Speaker 1: arrested sho ze Way, a notorious Chinese hacker, at the
Speaker 1: U S government's request. Shu and his cohort Zang Yu,
Speaker 1: are accused of unleashing the infamous Hafnium aka silk Typhoon
Speaker 1: hacks on Microsoft Exchange servers. This wasn't your run of
Speaker 1: the dash millimeter phishing attempt. We're talking breaches at over
Speaker 1: sixty thousand US entities, targeting everything from COVID nineteen research
Speaker 1: at top universities to sensitive business email troves. US authorities
Speaker 1: say the Chinese Ministry of State Security directly orchestrated some
Speaker 1: of these attacks, and the trail sale goes through Shanghai
Speaker 1: Power Rock Network shoes employer. The DOJ sees this is
Speaker 1: a win, but Google's John Holtquest warns, with dozens of
Speaker 1: teams still out there. This won't slow the cyber espionage treadmill,
Speaker 1: though it might make the next shoe think twice. Meanwhile,
Speaker 1: the US just went defcon too on advanced chip exports.
Speaker 1: In Nvidia's H one hundred and AMD's mi I three
Speaker 1: hundred x GPUs were already China nogos, but now the
Speaker 1: US Commerce Department is extending licensing requirements to Malaysia and Thailand.
Speaker 1: Why Chinese firms like deep Seek have been using shell
Speaker 1: companies there to skim chips despite embargoes. Malaysia's Trade Minister
Speaker 1: Tenkuzafru Lasease even set up a task force to audit
Speaker 1: every in Nvidia GPU shipment. Imagine digital customs officers with
Speaker 1: x ray vision. Singapore too is prosecuting middlemen for shipping
Speaker 1: three hundred and ninety million dollars in chips to deep
Speaker 1: leaving the whole Southeast Asian supply chain jumpy. This is
Speaker 1: the tech version of whack dasher dash Mall regulators plug one,
Speaker 1: leak another spring somewhere else. If you're wondering how all
Speaker 1: this regulatory crossfire is hitting industry, look no further than
Speaker 1: the AI sector. Deep Seek's budget friendly, high performing AI
Speaker 1: models sparked a trillion dollar market panic in the US
Speaker 1: back in January, with tech stocks briefly in free fall.
Speaker 1: Washington responded by evaluating deep Seek for national security risks,
Speaker 1: while Beijing quietly sees the passports of Deep Seek's top
Speaker 1: engineers and not so on to way of saying you're
Speaker 1: not leaving any time soon. Copyright is now the new battleground,
Speaker 1: as US lawmakers weigh rules that could hamper American AI
Speaker 1: labs more than Chinese ones, since Beijing has zero qualms
Speaker 1: about hoovering up copyrighted US data for training Let's not
Speaker 1: forget policy. The US Department of Justice's Data Secureuity Program
Speaker 1: kicks in tomorrow, July ninth, enforcing the toughest rules yet
Speaker 1: on international data transfers, especially to China and other countries
Speaker 1: of concern. Tech companies scrambling to comply could face severe
Speaker 1: penalties if they slip up now that the ninety day
Speaker 1: grace period is over zooming out. Experts at UBS predict
Speaker 1: that with the US China trade truce expiring in August,
Speaker 1: stricter penalties could further split global tech markets, rewarding compliant
Speaker 1: Western firms and squeezing those reliant on Chinese demand. If
Speaker 1: that's not enough, new FEOC rules deny US energy tax
Speaker 1: credits to projects using too much Chinese content, tightening the
Speaker 1: financial vice on tech imports. So where does this all lead?
Speaker 1: Strategic decoupling is accelerating and both sides are doubling down.
Speaker 1: For the US, that means more export controls, comply crackdowns,
Speaker 1: and polythy innovation. For China, it's about turbocharging domestic alternatives,
Speaker 1: outflanking sanctions, and occasionally playing a little global chess with
Speaker 1: its hacker pawns. That wraps another bite sized burst of
Speaker 1: the US to China tech rivalry. Thanks for tuning in, listeners,
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