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<v Speaker 1>Welcome to Beijing. Bites US China tech war updates. I'm

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<v Speaker 1>ting you're on the ground in the clouds expert for

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<v Speaker 1>all things China, cyber and the world's favorite digital rivalry.

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<v Speaker 1>Let's skip the small talk and jack right into what's

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<v Speaker 1>been lighting up the fiber optics between DC and Beijing

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<v Speaker 1>these past two weeks. First, the cyberfront. Barely a week ago,

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<v Speaker 1>the US Commerce Department dropped new rules hammering Chinese access

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<v Speaker 1>to AI chips. The guidelines are clear, no using Huawei's

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<v Speaker 1>as send chips, no US chips to train China's AI,

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<v Speaker 1>and definitely no re exporting those high end semiconductors to

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<v Speaker 1>Chinese territory. It's not just a game of cat and mouse.

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<v Speaker 1>It's more like firewall and mouse trap. And to make

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<v Speaker 1>things spicier, export controls now hit electronic design automation software.

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<v Speaker 1>That's the secret sauce for designing next gen chips. The

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<v Speaker 1>US even halted Leap one seed jet engine sales to

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<v Speaker 1>China's COMACC nine nine program. Aviation geeks, Yes, that's a

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<v Speaker 1>major jolt to China's ambition to rival Boeing and Airbus.

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<v Speaker 1>What's China's move, lin Jin spokesperson extraordinaire from China's Foreign

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<v Speaker 1>ministry called the US approach an overstretch of national security

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<v Speaker 1>and a weaponization of tech policy. Expect more calls for dialogue,

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<v Speaker 1>but Beijing is plowing ahead with its own one hundred

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<v Speaker 1>and forty three billion dollar plan to build out domestic

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<v Speaker 1>semiconductor muscle. Now, about those smartphone exports, brace yourself a

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<v Speaker 1>stunning seventy two percent collapse in shipments, the steepest since

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<v Speaker 1>records began. Blame it on the tech war, stricter export controls,

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<v Speaker 1>and the ongoing tug of war over chips that's smacking

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<v Speaker 1>supply chains harder than a summer typhoon. Huawei, once king

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<v Speaker 1>of the mobile hill, continues to feel the pain from

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<v Speaker 1>US entity list expansions and restrictions on five enimeter chip access.

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<v Speaker 1>On the policy side, May twelfth marked a rare thaw.

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<v Speaker 1>Both Washington and Beijing agreed to cut reciprocal tariffs to

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<v Speaker 1>ten percent. But don't let the sunshine fool you. The

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<v Speaker 1>big ticket electronics think iPhones, laptops, SSDs scored a short

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<v Speaker 1>lived tariff exemption, yet they're still tangled in a labyrinth

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<v Speaker 1>of twenty percent and fifty percent duties, especially for semiconductors.

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<v Speaker 1>Call it a selective ceasefire. The tech war rages on elsewhere. Strategically,

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<v Speaker 1>both countries are doubling down on choke points. The US

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<v Speaker 1>is wielding its semiconductor hammer, blocking ASML's EUV lithography sales

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<v Speaker 1>to China, while China flexes its rare Earth's dominance. Eighty

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<v Speaker 1>five percent of the world's processing power is in Chinese hands.

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<v Speaker 1>These aren't just economic levers, their national security pressure points,

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<v Speaker 1>with huge implications for everything from clean energy to electric vehicles.

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<v Speaker 1>Expert takeaway. The old trade war has officially evolved. It's

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<v Speaker 1>less about balance sheets more about who'll invent the future.

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<v Speaker 1>Tech transfer, intellectual property, and control of AI are now

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<v Speaker 1>front and center. Both sides are weaponizing innovation and plugging

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<v Speaker 1>leaks in academic and industrial collaborations, all while domesticating their

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<v Speaker 1>tech supply chains. This is a genuine strategic decoupling, not

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<v Speaker 1>a full divorce, but one where every app, chip and

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<v Speaker 1>line of code is up for grabs. Forecast tech rivalry

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<v Speaker 1>is the new normal, dialed up to eleven. Both sides

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<v Speaker 1>are digging in for a drawn out battle. Think cyber skirmishes.

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<v Speaker 1>Tit for TAT restrictions and relentless R and D sprints.

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<v Speaker 1>Silicon sovereignty isn't a buzzword now, it's a survival strategy.

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<v Speaker 1>Stay tuned because in the US China tech War, rebooting

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<v Speaker 1>is never an option. Thanks for listening. Make sure you

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