This is your Beijing Bytes: US-China Tech War Updates podcast.

Hey listeners, Ting here, your friendly neighborhood China, cyber, and hacking nerd, diving straight into Beijing Bytes: US‑China Tech War Updates.

The past two weeks have been a roller coaster of silicon, sanctions, and zero‑days. Let’s start with the hottest chip in town: Nvidia’s H200. After months of drama, Donald Trump greenlit conditional exports of the H200 to approved Chinese buyers, with a 25% revenue skim flowing straight into the US government. Fintech Weekly and Carnegie analysts say this basically turns export control into a national‑security sales tax, keeping licensing power in Washington’s hands while still letting Nvidia cash in.

Over in Beijing, policymakers are… unimpressed. Asia Times reports Chinese commentators calling for a “twin‑track” strategy: use H200s for critical AI training where necessary, but double‑down on homegrown chips to avoid what they call “technological lock‑in.” Some even warn the H200 is a “sugar‑coated bullet” that cements dependence on US silicon. Add in Beijing’s earlier moves on drone parts, gallium and germanium exports, and you can see the pattern: China wants leverage in materials, the US wants leverage in compute.

On the cyber front, things got spicy. CISA and Canada’s Cyber Centre dropped a detailed analysis of BRICKSTORM malware, tying it to a China‑nexus group dubbed WARP PANDA, which specializes in cloud and VMware environments. The malware is designed for long‑term persistence inside IT and government networks. Acting CISA director Madhu Gottumukkala warned this isn’t smash‑and‑grab; it’s embed‑and‑wait sabotage tooling. Almost immediately, the UK sanctioned Chinese firms i‑Soon and Integrity Tech for “reckless and indiscriminate” cyberattacks, while China’s Foreign Ministry spokesperson Guo Jiakun fired back, calling the US a “hacker empire” and accusing London of politicizing cybersecurity.

Meanwhile, CISA, NSA, and FBI are still warning about China‑linked Volt Typhoon and Salt Typhoon burrowing into US infrastructure, and Dark Reading notes that Washington quietly paused planned sanctions on China’s Ministry of State Security over the Salt Typhoon telecom hack to protect a fragile trade deal. Translation: trade leverage is competing head‑to‑head with cyber deterrence.

Layer on top the global React2Shell exploitation wave. The Hacker News and Kaspersky say tens of thousands of attacks in a single day, disproportionately hitting Asia‑Pacific networks and select .gov and critical infrastructure targets. Analysts point out those targeting patterns line up suspiciously well with Beijing’s intelligence priorities.

Strategically, experts at Carnegie and ICAS argue both sides think they’re playing 4D chess: Washington believes it still dominates advanced chips by at least twenty‑to‑one, while Beijing bets that sanctions will ultimately accelerate Chinese self‑reliance in semis, AI, and even space‑based supercomputing, as highlighted by Chinese Academy of Sciences researcher Han Yinhe.

My forecast? Expect three things: more creative US export models like the H200 “taxed access” channel, sharper Chinese counters combining cyber operations with supply‑chain choke points, and an arms race in denial‑and‑deception—phantom data centers, smuggled GPUs, and ever stealthier malware.

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