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