US-China Relation

OpenAI has told US lawmakers that Chinese AI company DeepSeek is using advanced methods to copy outputs from American AI models to train its own systems. The company warned this could weaken US AI leadership and create safety and business risks by bypassing safeguards and replicating capabilities without permission.

China has told local companies to stop using cybersecurity software from more than a dozen U.S. and Israeli firms, citing national security risks and fears that sensitive data could be sent overseas. The move supports Beijing’s push to rely more on home-grown technology and reduce dependence on Western suppliers.

Chinese AI company DeepSeek is rapidly expanding in Africa, Russia, Belarus, and other markets using low-cost, open-source models backed by government subsidies. Microsoft warns that U.S. tech firms risk falling behind as their paid, controlled AI systems struggle to compete on price and accessibility.

Nvidia is ready to sell its H200 AI chips to China, but shipments are on hold while the US government reviews export licences. Strong demand from Chinese customers is building, and any approval will likely show through purchase orders rather than official announcements.

Tencent has gained access to Nvidia’s banned Blackwell AI chips by using data centres in Japan and Australia, instead of bringing the hardware into China. The setup lets Tencent keep training advanced AI models while staying outside US export rules.

TikTok’s Chinese owner, ByteDance, has agreed to hand control of its US operations to a new US-led company to avoid a ban. The deal gives American and global investors 80.1% ownership, while ByteDance keeps 19.9%, and the joint venture will manage US data, algorithms, and content locally.

Amazon and Microsoft are supporting a U.S. law, the GAIN AI Act, to restrict exports of high-performance Nvidia AI chips to China until domestic demand is met. Nvidia has opposed the move, warning it could hurt global competition and cost the company billions, while the U.S. frames it as a national security measure.

China has accused the U.S. of seizing 127,000 bitcoin, worth around $13 billion, in what it calls a state-backed cyber operation rather than a legal asset confiscation. The U.S. says the coins were linked to a Cambodian crypto fraud case, but China argues the seizure shows government-level involvement.

U.S. President Donald Trump has finally met up with Chinese leader Xi Jinpiong in South Korea today in a bid to defuse the escalating trade tensions and reverse the market turmoil sparked by recent tariffs — including the crypto sell-off earlier this month.

In the rollercoaster turn of events, Treasury Secretary Scott Bessent announced on Sunday that the U.S and China have avoided a catastrophic 100% tariff after both parties have made substantial progress towards their negotiations.