(Preview) The Fog of the Trade War Continues; US Restricts Nvidia Sales to the PRC; Jensen Huang Heads to Beijing; Rare Earths and Supply Chain Anxieties

Apr 18, 2025

The discussion dives into the evolving trade war between the U.S. and China, examining the new 145% tariffs on Chinese goods. The U.S. restricts Nvidia from exporting H20 chips, raising questions about future tech relations. Jensen Huang's strategic visit to Beijing highlights tensions in the tech sector. Restrictions on rare earth exports from China reveal deeper supply chain anxieties. As TikTok faces uncertainty amidst these tariffs, the geopolitical landscape surrounding tech continues to shift dramatically.

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INSIGHT

Nvidia CEO's Beijing Visit Risks Blowback

Nvidia's CEO Jensen Huang's visit to Beijing right after US export bans signals complicated US-China tech tensions.
His public talks with Chinese officials make Nvidia vulnerable to increased US regulatory scrutiny.

INSIGHT

Nvidia Circumvents Export Controls

Nvidia exploits loopholes like the H20 chip to continue selling to China despite US export controls.
Huang's cooperation with Chinese firms may be seen as opposing US government efforts and harm Nvidia's position.

INSIGHT

Nvidia's Indirect Sales Risk Scrutiny

Nvidia's sales strategy involving Singapore raises concerns about indirect chip sales to China.
Nvidia's approach may attract intensified US government investigation and complicate its compliance image.

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Bill Bishop is the author of Sinocism

On today's show Andrew and Bill return to discuss the state of the trade war two weeks after “Liberation Day” and the imposition of a 145% tariff rate on PRC goods. Topics include: Reports of a Trump Admin strategy to isolate the PRC, daily talk of a deal with China from President Trump, himself, signals from the PRC side that they may be willing to negotiate, and the PRC cancels orders of Boeing planes. From there: A raft of news on Nvidia as the U.S. restricts the export of H20 chips to China, Jensen Huang visits Beijing for an appearance with He Lifeng, and questions for the future of Nvidia and U.S. chip policies more generally. At the end: China restricts the export of rare earths to the U.S., rare earths as a keystone to understanding broader U.S. supply chain challenges, "Red and Expert" anxiety 60 years later, and TikTok faces new uncertainty in the wake of the tariffs.

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U.S. Plans to Use Tariff Negotiations to Isolate China — Wall Street Journal

Xi Fights Trump’s Tariffs With Global Charm Offensive — Wall Street Journal

China Open to Talks If US Shows Respect, Names Point Person — Bloomberg

China replaces top international trade negotiator as talks with Washington stall — CNBC

Nvidia faces $5.5 billion charge as US restricts chip sales to China — Reuters

Washington Takes Aim at DeepSeek and Its American Chip Supplier, Nvidia — New York Times

Nvidia chief Jensen Huang flies to Beijing for talks — Financial Times

Post from E-China News — X

Post from the Select Committee on the Chinese Communist Party — X

Nvidia H20 Restricted in China, The Huawei CloudMatrix 384, Whither Chip Controls — Stratechery

Remarks by Director Kratsios at the Endless Frontiers Retreat — The White House

China Halts Critical Exports as Trade War Intensifies — New York Times