• Hacked! US-China Tech War Heats Up with Cyber Attacks, Chip Crackdowns, and an Antitrust Twist

  • Dec 17 2024
  • Length: 3 mins
  • Podcast

Hacked! US-China Tech War Heats Up with Cyber Attacks, Chip Crackdowns, and an Antitrust Twist

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

    Hey there, I'm Ting, and let's dive right into the latest updates on the US-China tech war. Over the past two weeks, we've seen some significant developments that are shaping the future of this high-stakes competition.

    First off, cybersecurity incidents have been making headlines. Just last week, the White House confirmed that at least eight US telecom firms were hit by a Chinese hacking campaign, giving Beijing access to private texts and phone conversations of an unknown number of Americans, including senior government officials and prominent political figures[1]. This is a stark reminder of the persistent threat posed by malicious cyber actors operating in China.

    In response to these threats, the US has been tightening its tech restrictions. The National Defence Authorisation Act unveiled recently would effectively bar contractors from selling chips or tools to Huawei or its affiliates, further squeezing the Chinese tech giant[3]. Additionally, the Treasury Department sanctioned Sichuan Silence Information Technology Company and one of its employees for their roles in compromising tens of thousands of firewalls worldwide, including those of US critical infrastructure companies[4].

    These moves are part of a broader strategy to curb China's technological advancements. The US has also stepped up export controls on the semiconductor industry, which has led to Chinese chip tool maker Empyrean Technology handing control of its board to a state-owned enterprise after being blacklisted by Washington[3].

    But China isn't taking these restrictions lying down. In an apparent response to the tightened chip restrictions, China launched an antitrust probe into US chip giant Nvidia, marking an escalation in the tech war[3]. This move underscores the complex interplay between economic and security interests in this competition.

    Expert analysis suggests that while the US-China tech war is intensifying, there are also underappreciated sources of structural stability that could keep relations from further deteriorating. Scott Kennedy of CSIS notes that the recent summit meeting between Presidents Joe Biden and Xi Jinping has created guardrails that reduce the likelihood of the most disastrous outcomes[2].

    Looking ahead, it's clear that the US-China tech war will continue to shape the global tech landscape. As we move into 2025, expect more strategic maneuvering from both sides, with cybersecurity, semiconductors, and artificial intelligence remaining key battlegrounds. That's all for now from Beijing Bytes. Stay tuned for more updates on this ever-evolving tech war.

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