Bloomberg Daybreak: Asia Edition White House Holds Off on New Chinese Chip Tariffs, U.S. Economy Growth
Dec 24, 2025
Tiffany Hsiao, a Portfolio Manager at Matthews International Capital Management, discusses the USTR's findings on China’s semiconductor practices and the potential for a dual AI ecosystem. She also highlights China's pursuit of domestic AI hardware and the implications of its robust power infrastructure. Chris Kampitsis, Managing Partner at Barnum Financial Group, analyzes the surprising 4.3% GDP growth and its effects on Federal Reserve policy, while advocating for a barbell investment strategy and caution around tech valuations.
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U.S. Finds China’s Semiconductor Approach Problematic
- The USTR found China used aggressive non-market policies to boost its semiconductor industry and create foreign dependency.
- Despite the findings, the U.S. held off on new tariffs until at least mid-2027, likely reflecting a trade truce.
Two Parallel AI Ecosystems Emerging
- Tiffany Hsiao warns a prolonged US–China split could create two separate AI ecosystems: one inside China and one outside.
- Companies are already mapping worst-case scenarios and preparing for parallel technology stacks through 2025.
China Balances Imports With Domestic AI Buildout
- China will still buy advanced NVIDIA chips where needed but will push hard to build domestic chips, data centers, and power support.
- China’s substantial power infrastructure gives it an advantage for energy-hungry AI deployments.