This is your Beijing Bytes: US-China Tech War Updates podcast.
Hey listeners, Ting here with your latest download of Beijing Bytes, where the US‑China tech war is basically a never‑ending zero‑day.
Let’s start with the big-picture alert. The new Pentagon report to Congress, Military and Security Developments Involving the People’s Republic of China 2025, says China’s rapid military buildout now puts the US homeland directly at risk, with cyber operations called out alongside nukes and space weapons. The report highlights a 150 percent spike in Chinese intrusions on US critical infrastructure in 2024, including the Volt Typhoon campaigns quietly burrowing into energy, water, and telecom networks as potential “break glass in case of Taiwan crisis” access.
Beijing, meanwhile, is tightening its own digital perimeter. Cooley’s China data team notes that regulators just dropped multiple draft rules: new personal information protection rules for large online platforms, new cyberspace supervision and inspection measures for public security, and fresh network data security risk assessment requirements. Translation: if you’re a big platform or cloud provider touching Chinese users, expect deeper audits, mandatory risk assessments, and faster penalties when something pops.
And something just popped. Kuaishou, the Chinese short‑video giant and TikTok rival, was hit by what Chinese outlets and Cybersecurity Insiders describe as an AI‑powered porn content attack that hijacked livestreams and briefly flooded users’ feeds, wiping about 6 percent off Kuaishou’s market cap in a day. Analysts at AInvest point out that this single incident has reignited questions about content security, model abuse, and whether Chinese social giants are under‑investing in hardcore cyber over pure growth.
On the economic front, the chip war looks like a stalemate with a timer. Tom’s Hardware and Asia Financial report that the Trump administration has announced new tariffs on Chinese semiconductors and electronic components, but pushed implementation to 2027. Officially it’s retaliation for “non‑market overcapacity” and semiconductor dominance; unofficially it’s a pressure valve as Washington tries to keep talks with Beijing alive while also leaning on Section 301 findings that accuse China of unfairly targeting legacy chips.
Meanwhile, Futurism points out that years of US export controls on Nvidia AI silicon have had a side effect: global investors are suddenly rating Chinese tech as “most attractive,” with UBS citing strong policy backing, self‑reliance, and rapid AI monetization. Beijing’s bet on domestic AI chips and models is starting to look less like catch‑up and more like parallel ecosystem.
Strategically, here’s the play: the US is trying to slow China’s access to cutting‑edge hardware while exposing and hardening against Chinese cyber operations. China is locking down data at home, pushing indigenous chips, and probing US infrastructure to build leverage. Over the next year, expect more “not yet active” tariffs, more AI‑driven cyberattacks on both sides’ platforms, and a sharper split in cloud, chips, and critical‑infrastructure tech stacks.
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