This is your Beijing Bytes: US-China Tech War Updates podcast.
Hello everyone, Ting here, your digital byte-sized guide to the tangled drama of US-China tech rivalry! Let’s get right to the silicon heart of the matter—over the past two weeks, the tech competition between Washington and Beijing has packed as much suspense as the latest hit C-drama, but with more semiconductors and fewer love triangles.
First up, cyber frontlines have been unusually noisy. The usual shadowy exchanges between Chinese and American cyber actors hit new levels after suspected state-linked hackers targeted financial firms in both nations. Notably, anonymous Chinese sources pointed fingers at Washington for "weaponizing cyberspace," while US agencies traced a sophisticated phishing campaign back to a Shanghai-based hacking collective. Cue the accusations, denials, and many a “no comment”—classic cyberwarfare theater.
Meanwhile, fresh tech restrictions are coming down like spring rain. On May 12, both sides announced a mutual tariff rollback—an apparent pause to the so-called “Chip War” with US tariffs on Chinese tech goods dropping from a blistering 145% to 30%, and China slashing its countermeasures to a softer 10%. Sounds like progress, right? Well, as Zhou Weihuan over at UNSW noted, don’t break out the baijiu just yet: these tariff cuts are temporary, and deeper tensions remain alive and well. Beijing is still wary of Washington’s ever-tightening chokehold on advanced semiconductors and AI, especially after last week’s surprise controls on chipmaking equipment exports to China.
The policy front is equally steamy. The US is doubling down on its industrial policy, with Congress approving a new tech investment review board aimed squarely at outbound investments in Chinese AI and quantum startups. China isn’t just watching: it’s stepping up its “dual circulation” policy, funneling investment into homegrown champions like DeepSeek—the AI firm causing waves by powering not just EVs but also robotics giants like UBTech and PC conglomerate Lenovo. Deutsche Bank analysts even called DeepSeek’s rise a “Sputnik moment” for China, a warning bell for Washington that the next industrial revolution clock is ticking fast.
Industry impact? The global supply chain continues its identity crisis. Chipmakers in Taiwan and South Korea are caught in the crossfire, forced to choose sides as US and China both dangle incentives and wield penalties. Meanwhile, smaller nations are sweating—caught between two tech giants, the risk of getting squeezed rises by the day.
What’s the strategic outlook? Experts warn that while this ceasefire on tariffs may cool markets temporarily, the tech rivalry is only fragmenting the global order further. Think less of a “new cold war,” more of an endless tug-of-war, with countries and companies forced to pick teams or risk going solo. Long story short: no one should expect lasting peace—just briefer, sharper battles.
Forecast: expect more sanctions, more cyber skirmishes, and, for the world, a bigger question—who really gets to write the next chapter of the digital age? That’s all from Ting! Stay byte-wise, stay curious.
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