This is your Beijing Bytes: US-China Tech War Updates podcast.
Ting here, your byte-sized guide through the cyber labyrinth of the US-China Tech War. Strap in, listeners, because these last couple of weeks have felt like a game of Capture the Flag—except the flags are AI models, rare earths, and, oh yes, military secrets.
Let’s start with headline-grabbing drama: Last week, China's Cyberspace Administration threw accusations at the US, claiming the Americans tried backdooring NVIDIA chips and leveraged Microsoft zero-days to snoop around Chinese military networks. Nvidia, summoned like a Hogwarts student caught with forbidden spells, had to explain if their new H20 chips—designed specifically to stay one step ahead of US export bans—were carrying secret American stowaways. And the plot thickened: China’s own CERT and the CAC accused US intelligence of hacking into a major Chinese military enterprise using Exchange zero-days, maintaining persistence for almost a year. The breach involved over 300 systems, SSH tunnels, and malware hot-potato. It’s the kind of cloak-and-dagger campaign that sends red teams everywhere scrambling for coffee and new passwords.
Cyber’s not a one-way street, though. In the aftermath of last year’s Salt Typhoon attack—where Chinese APTs infiltrated US telecommunications, snagging wiretap databases and confirming which spies were discovered—Four out of Five Eyes nations, the US included, recommended mandatory end-to-end encryption. Even the FBI agreed, setting aside decades of ‘strong encryption equals bad’ rhetoric, while London took its own path with new surveillance rules.
Turning to the policy chess match, the US has half-walked back some restrictions, reauthorizing exports of those same NVIDIA H20 chips to China, just as both sides prepare for trade talks in Stockholm. The Trump administration’s focus is split: shore up American alliances while dialing up tariffs and investment in domestic minerals. Washington is also investing in breaking China’s monopoly on minerals essential for batteries and smart tech. Meanwhile, China responds by further clutching its grip on rare earths. Western defense contractors are feeling the pinch—imagine your missile program stuck waiting for a shipment of germanium at Ningbo port, or pricing spikes 60 times the norm. That’s not supply chain risk; that’s strategic coercion.
Now, cue the AI arms race montage. The US and China both rolled out dueling national AI strategies in July. President Trump’s plan is all about removing bureaucratic chokeholds to keep the States at the front of the machine-learning pack. Premier Li Qiang’s counter, presented at WAIC in Shanghai, calls for a global AI rules framework but not-so-subtly blasts American “tech monopolies” and export restrictions. China claims this isn’t just about keeping up—it’s about ensuring AI’s benefits reach the “global community,” while US messaging highlights homegrown jobs and allied innovation. But even as decoupling fever spikes, their economies are like tangled earbud wires: China still processes 90% of the world’s rare earths, US tech still dominates high-end chips. Surprise: the US relaxed some chip controls in exchange for China relaxing rare earth bans, a reminder that zero-sum posturing only gets you so far.
Expert verdict? Protectionist moves, like early chip bans, backfired and turbocharged China’s self-reliance efforts, sparking a gold rush in domestic R&D. Alibaba, Huawei, and SMIC have all rolled out homegrown CPU and GPU alternatives, threatening Western hardware hegemony in AI.
Forecast ahead: Expect more tit-for-tat cyber ops as both sides ramp up digital espionage and accusations, especially as trade talks wobble. Policy shifts will keep coming, but the real battle is for global standards and supply chain control. If you’re in tech—or invest in it—watch regulatory changes like a hawk, because the rules are being rewritten as fast as the code.
Thanks for tuning in to Beijing Bytes—your essential update on the US-China cyber and tech war. Subscribe for weekly wisdom and don't forget, this has been a quiet please production, for more check out quiet please dot ai.
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Aug 15 20254 mins