China

China has banned semiconductor research firm TechInsights, citing national security, from engaging with Chinese entities amid scrutiny of its chip industry. This action, following TechInsights’ report on Huawei’s AI chips revealing reliance on foreign components, raises concerns about transparency in China’s semiconductor advancements and its goal of self-sufficiency. The ban is seen as an attempt to control the narrative surrounding China’s chipmaking progress, especially as it aims to challenge US dominance in AI chips. Huawei’s reliance on international suppliers, despite US restrictions, adds complexity.

Nvidia CEO Jensen Huang warns that the U.S. is “not far ahead” of China in AI, urging a nuanced strategy amidst intensifying competition. He acknowledges advancements in Chinese AI models and infrastructure, noting their lead in certain open-source aspects and energy production. Despite U.S. chip advantages, Huawei is challenging its dominance. Huang emphasizes the need for American companies to accelerate AI adoption and cautions against isolating U.S. technology, highlighting China’s significant market share and innovation in AI. He stresses the importance of global engagement to win the AI race.

China’s silence following Trump’s tentative approval of a deal to preserve TikTok’s U.S. operations fuels uncertainty. Despite Trump’s claim of Xi’s approval, Beijing has offered no official confirmation. State media has been restrained, and ByteDance remains silent. Reports of a potential two-entity structure for TikTok’s U.S. operations add complexity. Concerns remain about algorithmic control and whether the proposed deal addresses U.S. national security risks, particularly given TikTok’s growing influence as a news source. The deal’s fate hinges on Beijing’s endorsement and satisfying both countries’ interests.

The iPhone 17 series launched globally, drawing long queues in China and Singapore. Chinese customers cited improved design, storage, and user experience as reasons for switching from Huawei and Xiaomi. While early indicators are promising, Apple faces intense competition from domestic brands in China and needs to focus on AI innovation. Analysts like Ben Wood suggest Apple must refine its AI strategy to maintain its premium brand image and investor confidence following previous lukewarm AI rollouts. Pre-order data and consumer sentiment appear positive.

China has reportedly expanded restrictions on Nvidia chips, impacting the RTX Pro 6000D AI chip in addition to the H20 GPU. This move signals growing confidence in China’s domestic semiconductor industry and a potential negotiation tactic with the U.S. Huawei is emerging as a domestic force with its Ascend chips. Experts view these actions as a strategic attempt to gain leverage in trade negotiations, influencing U.S. policy on export controls. The U.S. may re-evaluate its approach balancing security concerns with economic interests.

House Speaker Mike Johnson criticized China as an “adversary” after reports surfaced of Beijing instructing tech firms to stop buying Nvidia’s AI chips, including the RTX Pro 6000D. This move signals China’s growing confidence in its domestic semiconductor industry and its push for self-reliance, substituting Nvidia’s products with alternatives like Huawei’s Ascend 910B. Nvidia’s CEO expressed disappointment, and analysts note potential revenue losses for U.S. chipmakers, highlighting the escalating conflict over AI chip access. China’s strategy may aim to bolster its domestic AI chip development.

Nvidia CEO Jensen Huang addressed challenges in the Chinese market amid escalating US-China tech tensions. He expressed disappointment over reports of China’s potential ban on Nvidia’s RTX Pro 6000D chip, designed specifically for the Chinese market. Huang highlighted Nvidia’s historical contributions to China but acknowledged broader strategic considerations. He mentioned US export controls, a reported agreement with President Trump, and an anti-monopoly investigation. Nvidia remains committed to both governments while navigating geopolitical complexities and investing in international partnerships, particularly in the UK’s AI infrastructure.

Baidu’s Hong Kong shares surged following its intensified AI focus and strategic partnerships, including a collaboration with China Merchants Group. The company is leveraging its Ernie Bot and investing heavily in AI development, backed by a recent $56.2 million bond offering. This move aims to bolster Baidu’s competitive position in China’s burgeoning AI market, where rivals like Tencent are also actively investing. The initiatives reflect Baidu’s commitment to translating AI research into practical applications, particularly in industrial intelligence.

U.S. Treasury Secretary Scott Bessent stated President Trump’s threat to ban TikTok significantly influenced reaching a framework agreement with China. Trump’s willingness to “let TikTok go dark” underscored the prioritization of national security. While ByteDance faces a September 17 deadline to divest its U.S. operations, negotiations stalled after new tariffs were imposed. The emerging TikTok deal, focused on curtailing potentially risky activities, may signal a turning point in strained U.S.-China relations, with discussions between Trump and Xi Jinping anticipated to finalize the agreement.

A potential resolution for TikTok in the U.S. is emerging, as former President Trump hinted at a possible deal with China. Concerns about national security and data privacy, specifically the potential for Chinese government access through ByteDance, fueled previous attempts to force a sale or shut down the app. Congress has even legislated against TikTok’s distribution. Trump intends to discuss the deal with President Xi Jinping. While specifics are undisclosed, it likely involves data security measures and content control to address U.S. concerns. This resolution may signal a shift in U.S.-China tech relations.