Tech Divorce Heats Up: US-China Trade Truce Just a Smokescreen for Decoupling Drama!

This is your Beijing Bytes: US-China Tech War Updates podcast.

Hey, tech warriors! Ting here, coming at you with the latest from the digital battlefield between the US and China. If you thought the trade war was cooling down, think again—it's just taking a new form.

So here's the scoop: On May 12, we saw what looks like a temporary ceasefire in the US-China trade tensions. Both countries agreed to slash their reciprocal tariffs to 10%, with China promising to remove those pesky non-tariff barriers they slapped on American companies back in April. Trump's administration is even exempting smartphones, computers, and various electronics from Chinese tariffs retroactively from April 5.

But don't be fooled by this 90-day reduction! According to the Gibson Dunn analysis, China's removing some serious countermeasures they implemented just last month. Remember when Beijing added 11 US companies to their "unreliable entities" list and banned 16 American defense and aerospace firms from accessing dual-use exports? That's all supposedly being walked back now.

The most fascinating part? While tariffs might drop temporarily, the tech decoupling is accelerating at warp speed. As I was scrolling through my feeds this morning, I noticed a report stating this split has evolved beyond temporary trade measures into a permanent structural shift that's fracturing global technology ecosystems.

Both superpowers are doubling down on tech sovereignty. The US is pumping $52 billion into domestic chip production through the CHIPS Act, with Intel and Applied Materials building foundries on American soil. Meanwhile, China's not sitting idle—Biren Technology (backed by Shanghai state funds) and DeepSeek's R1 AI chips are making serious plays to challenge America's AI dominance.

Perhaps most concerning is what's happening with rare earth minerals. Beijing briefly implemented export controls on seven types of rare earths to the US last month—materials critical for everything from electric vehicles to defense systems. Given that China produces about 90% of the world's supply, this was a power move that sent shockwaves through Western tech companies.

The smart money is moving toward semiconductor companies like ASML and SiFive, ASEAN supply chain players like BYD and ASE Technology, and cybersecurity firms like CrowdStrike and Palo Alto Networks.

Bottom line: The handshake we saw this week is just a temporary reprieve. The tech divorce is real, it's accelerating, and it's reshaping global supply chains in ways that will outlast any presidential administration. Stay vigilant, stay informed, and I'll see you next week for more Beijing Bytes!

For more http://www.quietplease.ai


Get the best deals https://amzn.to/3ODvOta