Welcome back listeners to another download of Beijing bites US China tech war updates. I'm ting your favorite cyber sleuth with a soft spot for semiconductors and sarcasm. Let's plug in. The rivalry has network congestion and the packets are flying. The last two weeks in tech warfare, who even by US China standards, It's been a bonanza of bands, cyber hyphen scuffles, and policy whiplash. Let's start with the silicon
soap opera. In Vidia, led by Jensen Juan, is once again dancing on the razor edge between profit and protectionism. After screaming headlines earlier this summer over US chip export bands, in Vidia rolled out the H twenty, a watered down AI chip designed specifically to skate under UIs restrictions and keep the wine rolling in but not so fast. US Commerce Secretary Howard Lutnik went on air and basically said, listen, China's not even getting the second best stuff. It's all
about American supremacy and tech addiction. Queue the regulatory thunder. Beijing took offence, ordered its tech darlings to scale back in video orders, and doubled down on pushing homegrown chip champions. Expect more made in China chips baked fresh by SMIC and Huawei, with deep seek Ai leading the charge in
efficient proprietary silicon. All this is in VideA and A and D make a once unthinkable deal a fifteen percent revenue kick back to Uncle Sam from Chinese chip sales just to get export licenses, setting a wild new precedent in how Washington monetizes tech depharmacy. Swinging to cyber, it's been a pressure cooker. The China linked silk Typhoon APT group also known as Murky Panda, is ramping up zero day and en day exploit attacks across North America, with
Crowdstride and others warning of their incredible targeting scope. Meanwhile, in the courts, a Chinese developer named David Liu was slapped with a four year US jail sentence for a sabotage stunt at Eaton Corporation. Think malicious code, delayed server deaths, and a kill switch for intranet carnage. The cyber battlefield
is as asymmetric and personal as ever. On the policy front, the US is nuking the beloved deminimous exemption for imports under eight hundred dollars that's effective in just a few days and will hammer e commas platforms like Sheen, Temu and even Amazon, who now face higher compliance costs and full custom scrutiny. China and Hong Kong got a head start on these restrictions back in May, so now trade pain is bilateral, and legal showdowns over executive authority could
drag this fight into twenty twenty seven. Perhaps the most strategic move China's unveiling of deep Seek AI open sourcing, a powerful GPT five rival built natively for local chips and price to undercut open AI globally. That resets the deck in both AI and crypto, since deep Seek's proprietary silicon is already nudging crypto mining operations toward China, threatening Western control of block two chain infrastructure, crypto and AI cold wars. Yet it's now a thing, So what do
the experts say? In a nutshell, tech is now treated as state craft, not just commerce. The US is getting more interventionist, demanding a cut of the action. China's pivoting faster to self reliance, shepherding domestic winners and ring fencing data flows, even as it faces compliance headaches from those same protective moves. Investors are hedging and innovators are speed
running the decoupling marathon. Forecast tensions will escalate, more fragmentation, twin technology ecosystems, and a constant tug of war between control and progress. Think Cold War with faster Wi Fi and more zero days. Thanks for tuning in to Beijing Bites. Don't forget to subscribe for your weekly jolt of witty Wired intelligence. This has been a quiet please production. For more, check out Quiet Please or a I