In this episode of China Decode, hosts Alice Han and James Kynge unpack how the global auto industry is facing a new chip crisis. Dutch chipmaker Nexperia has halted shipments to China after a payment and ownership dispute, forcing carmakers like Honda and Volkswagen to scramble for crucial semiconductor parts. They explain how a fight over factory control became the latest flashpoint in the U.S.–China tech rivalry — and why Europe is caught in the middle. Then, they turn to China’s most pressure-packed test: the Gaokao. With more than 10 million students vying for spots at top universities, the exam has long promised meritocracy but increasingly reflects inequality. Alice and James explore how this high-stakes system shapes opportunity, status, and ambition in modern China — and why reform remains so elusive. Finally, Trump and Xi agree to a one-year trade truce, pledging to ease tariffs, restart soybean purchases, and cool tensions over rare earths and fentanyl. But can either side really trust the other to follow through? The hosts break down what’s at stake — and whether this pause is a real breakthrough or just a political timeout.

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