Gavekal Technologies

Optimism from the US-China Geneva talks quickly faded as both sides accused each other of breaching the agreement. The Trump administration wants greater access to the China market, but is closing its own doors with expanding tech export controls. The latest, targeting electronic design automation tools, hit after Huawei and Xiaomi unveiled new chip breakthroughs.

China threatens legal counter to US export controls. Malaysia’s Huawei AI deal proceeds despite US pressure. And Tencent shrugs off the impact from US chip ban.

Xiaomi’s 3nm self-developed mobile SoC is ready. Xiaomi’s founder and CEO Lei Jun on May 19 announced Xiaomi’s Xring O1 mobile SoC on his Weibo, China’s equivalent for X.

US and China have agreed to a tariff truce. Washington and Beijing on May 12 issued a joint statement following weekend-long marathon talks between senior trade officials in Geneva.

Nvidia CEO Jensen Huang recently warned that expansive export controls could undermine US AI dominance —he makes a valid point. US export controls miss one important factor: Chinese firms used to superior foreign tech lacked market incentives to adopt inferior local substitutes. However, as foreign tech is cut off, export controls paradoxically force local innovation. As Chinese alternatives mature, they could ultimately pose a competitive threat to foreign tech in global markets.

Beijing protects domestic industries with tariff exemptions. TSMC’s Arizona losses risk US chipmakers’ profitability. Huawei plans new AI chip with SMIC’s 6nm process.