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