Speaker 1: Welcome to Beijing. Bites US China tech war updates. I'm
Speaker 1: ting you're on the ground in the clouds expert for
Speaker 1: all things China, cyber and the world's favorite digital rivalry.
Speaker 1: Let's skip the small talk and jack right into what's
Speaker 1: been lighting up the fiber optics between DC and Beijing
Speaker 1: these past two weeks. First, the cyberfront. Barely a week ago,
Speaker 1: the US Commerce Department dropped new rules hammering Chinese access
Speaker 1: to AI chips. The guidelines are clear, no using Huawei's
Speaker 1: as send chips, no US chips to train China's AI,
Speaker 1: and definitely no re exporting those high end semiconductors to
Speaker 1: Chinese territory. It's not just a game of cat and mouse.
Speaker 1: It's more like firewall and mouse trap. And to make
Speaker 1: things spicier, export controls now hit electronic design automation software.
Speaker 1: That's the secret sauce for designing next gen chips. The
Speaker 1: US even halted Leap one seed jet engine sales to
Speaker 1: China's COMACC nine nine program. Aviation geeks, Yes, that's a
Speaker 1: major jolt to China's ambition to rival Boeing and Airbus.
Speaker 1: What's China's move, lin Jin spokesperson extraordinaire from China's Foreign
Speaker 1: ministry called the US approach an overstretch of national security
Speaker 1: and a weaponization of tech policy. Expect more calls for dialogue,
Speaker 1: but Beijing is plowing ahead with its own one hundred
Speaker 1: and forty three billion dollar plan to build out domestic
Speaker 1: semiconductor muscle. Now, about those smartphone exports, brace yourself a
Speaker 1: stunning seventy two percent collapse in shipments, the steepest since
Speaker 1: records began. Blame it on the tech war, stricter export controls,
Speaker 1: and the ongoing tug of war over chips that's smacking
Speaker 1: supply chains harder than a summer typhoon. Huawei, once king
Speaker 1: of the mobile hill, continues to feel the pain from
Speaker 1: US entity list expansions and restrictions on five enimeter chip access.
Speaker 1: On the policy side, May twelfth marked a rare thaw.
Speaker 1: Both Washington and Beijing agreed to cut reciprocal tariffs to
Speaker 1: ten percent. But don't let the sunshine fool you. The
Speaker 1: big ticket electronics think iPhones, laptops, SSDs scored a short
Speaker 1: lived tariff exemption, yet they're still tangled in a labyrinth
Speaker 1: of twenty percent and fifty percent duties, especially for semiconductors.
Speaker 1: Call it a selective ceasefire. The tech war rages on elsewhere. Strategically,
Speaker 1: both countries are doubling down on choke points. The US
Speaker 1: is wielding its semiconductor hammer, blocking ASML's EUV lithography sales
Speaker 1: to China, while China flexes its rare Earth's dominance. Eighty
Speaker 1: five percent of the world's processing power is in Chinese hands.
Speaker 1: These aren't just economic levers, their national security pressure points,
Speaker 1: with huge implications for everything from clean energy to electric vehicles.
Speaker 1: Expert takeaway. The old trade war has officially evolved. It's
Speaker 1: less about balance sheets more about who'll invent the future.
Speaker 1: Tech transfer, intellectual property, and control of AI are now
Speaker 1: front and center. Both sides are weaponizing innovation and plugging
Speaker 1: leaks in academic and industrial collaborations, all while domesticating their
Speaker 1: tech supply chains. This is a genuine strategic decoupling, not
Speaker 1: a full divorce, but one where every app, chip and
Speaker 1: line of code is up for grabs. Forecast tech rivalry
Speaker 1: is the new normal, dialed up to eleven. Both sides
Speaker 1: are digging in for a drawn out battle. Think cyber skirmishes.
Speaker 1: Tit for TAT restrictions and relentless R and D sprints.
Speaker 1: Silicon sovereignty isn't a buzzword now, it's a survival strategy.
Speaker 1: Stay tuned because in the US China tech War, rebooting
Speaker 1: is never an option. Thanks for listening. Make sure you
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