logo
China calls US chip controls ‘bullying,' violation of international law

China calls US chip controls ‘bullying,' violation of international law

Yahoo21-05-2025

Investing.com-- China's ministry of commerce on Wednesday accused the U.S. of abusing export controls and using them to suppress China, after Washington issued new restrictions on advanced Chinese computing chips.
'The U.S. measures are typical unilateral bullying and protectionist practices, which seriously damage the stability of the global semiconductor industry chain supply chain,' a translation of the commerce ministry statement said.
'The U.S. has abused export controls and curbed and suppressed China, violated international law and basic norms governing international relations,' the commerce ministry said.
The statement was in response to recent guidance from the U.S. Department of Commerce that using Huawei Ascend chips anywhere in the world violated U.S. export controls.
While the U.S. has been blocking the flow of advanced AI chips to China for the past two years, the latest guidance from the commerce department represents an effort to stem the circulation of China-made chips. Huawei is already blacklisted by the U.S. government.
China had earlier this week warned that U.S. chip controls threatened to undermine a recent trade truce between the two countries.
Related articles
China calls US chip controls 'bullying,' violation of international law
Israel preparing possible strike on Iran's nuclear facilities, CNN reports
Hot inflation slams door on more BoC rate cuts: Scotiabank

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Nvidia (NVDA) Rises After Cathie Wood Rebuilds $18.5M Stake Near All-Time High
Nvidia (NVDA) Rises After Cathie Wood Rebuilds $18.5M Stake Near All-Time High

Yahoo

time29 minutes ago

  • Yahoo

Nvidia (NVDA) Rises After Cathie Wood Rebuilds $18.5M Stake Near All-Time High

Cathie Wood's Ark Innovation ETF (ARKK, Financials) resumed its position in Nvidia (NVDA, Financials), purchasing 128,163 shares valued at approximately $18.5 million on June 16, as the stock trades just 2.7% below its all-time high of $149.41. The move marks a reversal from 2022, when Wood exited her Nvidia position amid tightening U.S. export controls and macroeconomic concerns. She began rebuilding the stake in April following eased trade tensions and the Trump administration's decision to roll back AI-related export restrictions. Warning! GuruFocus has detected 4 Warning Signs with NVDA. The buy came shortly after Nvidia reported fiscal first-quarter results on May 28, with adjusted earnings of 96 cents per share on $44.06 billion in revenue, beating expectations of 93 cents and $43.31 billion, respectively. For the July quarter, the company forecast $45 billion in revenue, nearly $1 billion below consensus estimates, citing the impact of chip restrictions to China. Nvidia said revenue would have been about $8 billion higher without those curbs. China accounted for 13% of the company's revenue in the past fiscal year. Despite geopolitical risks, Nvidia stock is up 8.3% year to date. Wood's purchase comes as Ark Innovation ETF gains momentum, rising 15.9% in 2025 through June 18, outpacing the S&P 500's 1.9% increase. Wood's strategy remains focused on innovation platforms such as artificial intelligence, robotics, and blockchain, with Nvidia seen as a core holding aligned with those themes. Her flagship fund, however, has faced volatility, including a 60% decline in 2022 and a five-year annualized return of negative 0.3%, compared with the S&P 500's 15.7%. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

Top economist who previously sounded the alarm on tariffs sees a possible scenario where Trump ‘outsmarted all of us'
Top economist who previously sounded the alarm on tariffs sees a possible scenario where Trump ‘outsmarted all of us'

Yahoo

time44 minutes ago

  • Yahoo

Top economist who previously sounded the alarm on tariffs sees a possible scenario where Trump ‘outsmarted all of us'

Torsten Sløk, chief economist at Apollo Global Management, laid out a potential scenario where President Donald Trump's tariffs are extended long enough to ease economic uncertainty while also providing a significant bump to federal revenue. That comes as the 90-day pause on Trump's 'reciprocal tariffs' is nearing an end. Businesses and consumers remain in limbo over what will happen next with President Donald Trump's tariffs, but a top economist sees a way to leave them in place and still deliver a 'victory for the world.' In a note on Saturday titled 'Has Trump Outsmarted Everyone on Tariffs?', Apollo Global Management Chief Economist Torsten Sløk laid out a scenario that keeps tariffs well below Trump's most aggressive rates long enough to ease uncertainty and avoid the economic harm that comes with it. 'Maybe the strategy is to maintain 30% tariffs on China and 10% tariffs on all other countries and then give all countries 12 months to lower non-tariff barriers and open up their economies to trade,' he speculated. That comes as the 90-day pause on Trump's 'reciprocal tariffs,' which triggered a massive selloff on global markets in April, is nearing an end early next month. The temporary reprieve was meant to give the U.S. and its trade partners time to negotiate deals. But aside from an agreement with the U.K. and another short-term deal with China to step back from prohibitively high tariffs, few others have been announced. Meanwhile, negotiations are ongoing with other top trading partners. Trump administration officials have been saying for weeks that the U.S. is close to reaching deals. On Saturday, Sløk said extending the deadline one year would give other countries and U.S. businesses more time to adjust to a 'new world with permanently higher tariffs.' An extension would also immediately reduce uncertainty, giving a boost to business planning, employment, and financial markets. 'This would seem like a victory for the world and yet would produce $400 billion of annual revenue for US taxpayers,' he added. 'Trade partners will be happy with only 10% tariffs and US tax revenue will go up. Maybe the administration has outsmarted all of us.' Sløk's speculation is notable as he previously sounded the alarm on Trump's tariffs. In April, he warned tariffs have the potential to trigger a recession by this summer. Also in April, before the U.S. and China reached a deal to temporarily halt triple-digit tariffs, he said the trade war between the two countries would pummel American small businesses. More certainty on tariffs would give the Federal Reserve a clearer view on inflation as well. For now, most policymakers are in wait-and-see mode, as tariffs are expected to have stagflationary effects. But a split has emerged. Fed Governor Christopher Waller said Friday that economic data could justify lower interest rates as early as next month, expecting only a one-off impact from tariffs. But San Francisco Fed President Mary Daly also said Friday a rate cut in the fall looks more appropriate, rather than a cut in July. Still, Sløk isn't alone in wondering whether Trump's tariffs may not be as harmful to the economy and financial markets as feared. Chris Harvey, Wells Fargo Securities' head of equity strategy, expects tariffs to settle in the 10%-12% range, low enough to have a minimal impact, and sees the S&P 500 soaring to 7,007, making him Wall Street's biggest bull. He added that it's still necessary to make progress on trade and reach deals with big economies like India, Japan and the EU. That way, markets can focus on next year, rather near-term tariff impacts. 'Then you can start to extrapolate out,' he told CNBC last month. 'Then the market starts looking through things. They start looking through any sort of economic slowdown or weakness, and then we start looking to '26 not at '25.' This story was originally featured on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

Will skipping ‘Made in China' beat tariff price hikes?
Will skipping ‘Made in China' beat tariff price hikes?

Miami Herald

time2 hours ago

  • Miami Herald

Will skipping ‘Made in China' beat tariff price hikes?

For most shoppers, "Made in China" has been a way of life for consumers. The mark is on seemingly everything. That has consumers concerned about how tariffs and trade battles between the United States and China might hit home, literally. If tariffs ultimately act as a tax on consumers – most economists say they do – how can Americans avoid paying higher prices? Stop buying things that were made in China. That's easier said than Trump recently took to Truth Social to say that the United States and China have a deal that's done, pending final approval of leaders from both countries. He said that U.S. tariffs would be set at 55% on Chinese goods, while China's tariffs remain at 10%. Officially, tariff plans with China and other countries are on hold until July 9, but U.S. Commerce Secretary Howard Lutnick has said several times that the 55% tariff "definitely" will not change. Related: Major housing expert predicts huge change to mortgage rates in 2026 While many of the harshest tariff hikes face legal challenges, current U.S. tariff rates are at their highest levels in nearly a century; estimates from the Yale Budget Lab say that's costing the average U.S. consumer an extra $2,500 a year. A recent study by covering consumer sentiment about tariffs shows that nearly two-thirds of Americans believe tariffs will have a negative impact on their personal finances. Just over 40% of respondents said tariffs would "greatly worsen" their personal finances. But even if consumers decide to tackle the China tariff problem by eliminating spending on goods from the country, it doesn't mean they will save money. They also will find the task daunting, if not impossible. That's according to journalist Sara Bongiorni, who tried to live without goods from China for a year back in the early 2000s; the trials and tribulations of her effort became the basis for her book, "A Year Without Made in China." Bongiorni, now an adjunct professor at Louisiana State University, woke up on Christmas morning in 2005 to a house full of stuff, and as she rummaged through it, she realized almost everything was made in China. "I said to my husband, 'Do you think it would be possible to live for a while without things made in China? You want to try that?' He was not very enthusiastic about that idea, but we gave it a whirl." Related: Forget tariffs, Fed interest rate cuts may hinge on another problem Bongiorni didn't set out to make a political statement or to write a book. She was simply hoping "to understand at a personal level, as best we could, how much we relied on things from China in our everyday, ordinary consumer life." In a recent interview on "Money Life with Chuck Jaffe," Bongiorni recounted how her rule was to avoid the words "Made in China," which are only seen on the end consumer product sold to shoppers. That's a low bar, given that countless products are assembled in the United States or in other countries using parts from China. Those goods-like the ones with the Made in China label-will incur increased costs due to tariffs. Bongiorni noted that in certain product categories – notably toys, household gadgets, many types of electronics, coffeemakers, sneakers and footwear, and children's clothing – it was nearly impossible to find items that weren't made in China. Even when she did find rare exceptions, Bongiorni noted that the options often pushed her to higher-end goods, which meant paying more for the purchase, in some cases, more than she would expect to pay now on goods from China with tariffs attached. "I think there were so many things we didn't buy that year because you couldn't find a viable option that wasn't made in China," Bongiorni said. She also noted that, ironically, it's nearly impossible to celebrate a wholly American holiday like July 4th without goods from China, as the small flags, fireworks, parade toys, festive paper goods, and more were made there. Truly trying to avoid all goods from China – including component parts – would be nearly impossible, Bongiorni said, noting that consumers would find themselves with no easy alternatives. "The share of things, ordinary consumer items from China, account for at least 65% of things you find in a typical household," Bongiorni said. "If you push up [prices with tariffs up to 55%], that is a huge impact, especially when we've got inflation and other things going on in the economy. It's a huge thing for most families to have to shoulder that burden." More Tariffs: Aldi plans huge price cut despite tariffs driving costs higherCar buyers should shop these brands for the best tariff dealGeneral Motors makes $4 billion tariff move Bongiorni does think the United States can bring some manufacturing back onshore, but that will have a limited impact because of the breadth and volume of goods coming from China, and the convenience of having those items and getting them cheaply. "I have a hard time thinking that we can lure ourselves off of our connection to China as consumers as a long-term affair," she said, "but also I can see a huge public outcry because this is going to affect people's bottom line every month." While Bongiorni recalls her efforts fondly nearly two decades later, she says she would not want to permanently do without Made in China, even if tariffs raise costs. Avoiding goods from China and finding alternatives was "incredibly time-consuming." And when there were no viable product options, she was willing to go without certain items for a year, but would not want to sacrifice them for a lifetime. "I do think it's interesting to have an awareness of where things come from, and to get a sense to the extent you can to which you are connected to the international economy on that consumer level," said Bongiorni. "I found that enjoyable and interesting, but the idea of weaning ourselves from Chinese goods, after doing this, just seems very unrealistic.…I can't imagine living like that long-term." Related: Fed official sends shocking message on interest rate cuts The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store