United States

In the AI race, the US aims to limit China’s global AI supply dominance. At APEC’s Digital Weeks, US participation was understated, with companies like Google and Meta showcasing specialized, not flagship, AI. China, conversely, is pushing open-source models and building regional AI ecosystems. While competition is fierce, complete decoupling is unlikely, with Asia favoring customized solutions and potential technological convergence.

China has warned of a “back-door” security risk in Anthropic’s Claude Code AI tool, citing potential transmission of sensitive user data to remote servers. This warning, issued by China’s Ministry of Industry and Information Technology, follows accusations of Alibaba attempting to extract Anthropic’s AI capabilities. Despite official restrictions, many in China reportedly access U.S. AI tools, prompting companies like Alibaba to ban their employees from using Anthropic products. The situation underscores rising U.S.-China tech competition and the critical need for AI security.

Taiwan’s top trade negotiator has informed the U.S. that relocating 40% of its semiconductor supply chain is “impossible.” This statement pushes back against U.S. ambitions to onshore a significant portion of Taiwan’s chip manufacturing. While Taiwan Semiconductor Manufacturing Co. is increasing its U.S. investments, analysts agree that the complex ecosystem and various other factors make such a large-scale relocation unfeasible.

SK Hynix is establishing a new U.S.-based AI solutions company with a minimum $10 billion investment. This strategic move aims to accelerate AI adoption globally, capitalizing on the booming demand for AI hardware, particularly its leading HBM chips. The new entity, stemming from a restructuring of Solidigm, will also facilitate further investments in American AI firms and complement existing U.S. manufacturing plans.

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.

India is resisting escalating trade tensions with the US after Washington’s tariff hike on Indian goods. Prime Minister Modi vowed to protect Indian farmers’ interests. The Ministry of External Affairs deemed the US tariffs “unfair” and pledged to protect national interests. Despite concessions already made by India, the US demands more access to India’s agricultural sector, a politically sensitive area. An opposition party member even suggested closing McDonald’s in India in response to the dispute and Trump’s claims regarding India-Pakistan relations.

The United States has announced its withdrawal from UNESCO, effective December 31, 2026. This is the third time the U.S. has exited the organization. The U.S. State Department cited concerns over UNESCO’s “divisive” agendas, overemphasis on UN goals, and misalignment with U.S. foreign policy priorities. UN Secretary-General António Guterres expressed regret. Previous U.S. withdrawals occurred in 1984 and 2018, with a rejoining in 2003 and again in 2023 before this latest decision.