US Imposes 25% Metals Tariffs; A Look at China's AI Sector
Feb 11, 2025
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Taosha Wang, a Portfolio Manager at Fidelity International, sheds light on China's booming AI industry and its global repercussions. She delves into how U.S. tariffs on metals may reshape market dynamics and international relations. The conversation highlights key players like Deepsea and discusses the tension between U.S. export controls and China's tech advancements. Wang navigates the broader implications of these developments, suggesting a complex interplay of competition and potential cooperation in the tech arena.
The recent 25% tariffs on steel and aluminum imports by the US may lead to significant shifts in domestic manufacturing strategies and pricing dynamics.
China's AI sector is rapidly advancing, driven by innovative startups and algorithmic improvements, positioning it as a major competitor to the US.
Deep dives
Meta's Open Source AI Advancements
Meta's Open Source AI model, Lama, is designed to democratize access to artificial intelligence, enabling scientists to uncover treatments for diseases. The model has lowered the barrier to entry, allowing more individuals and organizations to engage in AI research without needing substantial financial backing. This shift is significant as it encourages innovation across the field, moving beyond traditional tech hubs and facilitating diverse contributions from various sectors. Examples of its application include its potential use in biological discoveries, which could lead to breakthroughs in medical treatment strategies.
Impact of New Tariffs on Steel and Aluminum
The recent executive order imposing 25 percent tariffs on steel and aluminum imports has significant ramifications for the U.S. market. Analysts suggest that this move came as a surprise to many, considering the previously restrained approach by the administration. The tariffs may prompt a shift in domestic manufacturing as companies seek to maximize their operational capacity to compensate for potential shortfalls in imports. Investors are closely watching how these tariffs will affect pricing, production, and broader economic conditions in the U.S., especially within industries reliant on these materials.
Current Landscape of AI in China
China's advancements in artificial intelligence, particularly through initiatives like DeepSeek, have positioned the country as a formidable competitor to the U.S. The emergence of AI startups is fostering a landscape where innovation can thrive without the constraints of significant venture capital financing. Despite suspicions regarding the use of advanced U.S. technology, the focus appears to be on algorithmic improvements rather than dependency on new chip technologies. This competitive climate is seen as a catalyst for both sides to reassess their strategies regarding export controls and collaborative opportunities as AI continues to evolve.
On today's episode, reaction to the US imposing a 25% blanket tariff on steel and aluminum imports with Joe Deaux, Metals and Mining Reporter for Bloomberg News. We also examine the state of China's AI industry with Taosha Wang, Portfolio Manager at Fidelity International. Plus - a look at the broader market landscape with Brian Krawez, President at Scharf Investments.