China

Zhipu AI launches free agent to rival DeepSeek

Chinese AI startup Zhipu AI has introduced a free AI agent, AutoGLM Rumination, aimed at assisting users with tasks such as web browsing, travel planning, and drafting research reports.

The product was unveiled by CEO Zhang Peng at an event in Beijing, where he highlighted the agent’s use of the company’s proprietary models—GLM-Z1-Air for reasoning and GLM-4-Air-0414 as the foundation.

According to Zhipu, the new GLM-Z1-Air model outperforms DeepSeek’s R1 in both speed and resource efficiency. The launch reflects growing momentum in China’s AI sector, where companies are increasingly focusing on cost-effective solutions to meet rising demand.

AutoGLM Rumination stands out in a competitive landscape by being freely accessible through Zhipu’s official website and mobile app, unlike rival offerings such as Manus’ subscription-only AI agent. The company positions this move as part of a broader strategy to expand access and adoption.

Founded in 2019 as a spinoff from Tsinghua University, Zhipu has developed the GLM model series and claims its GLM4 has surpassed OpenAI’s GPT-4 on several evaluation benchmarks.

In March, Zhipu secured major government-backed investment, including a 300 million yuan (US$41.5 million) contribution from Chengdu.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

Trump eyes tariffs on semiconductors in push to boost US tech manufacturing

US President Donald Trump is preparing to introduce new tariffs on semiconductor imports, aiming to shift more chip production back to the United States.

Semiconductors, or microchips, are essential components in everything from smartphones and laptops to medical devices and renewable energy systems.

Speaking aboard Air Force One, Trump said new tariff rates would be announced soon as part of a broader effort to end American reliance on foreign-made chips and strengthen national security.

The global semiconductor supply chain is heavily concentrated in Asia, with Taiwan’s TSMC producing over half of the world’s chips and supplying major companies like Apple, Microsoft, and Nvidia.

Trump’s move signals a more aggressive stance in the ongoing ‘chip wars’ with China, as his administration warns of the dangers of the US being dependent on overseas production for such a critical technology.

Although the US has already taken steps to boost domestic chip production—like the $6.6 billion awarded to TSMC to build a factory in Arizona—progress has been slow due to a shortage of skilled workers.

The plant faced delays, and TSMC ultimately flew in thousands of workers from Taiwan to meet demands, underscoring the challenge of building a self-reliant semiconductor industry on American soil.

Why does it matter?

Trump’s proposed tariffs are expected to form part of a wider investigation into the electronics supply chain, aimed at shielding the US from foreign control and ensuring long-term technological independence. As markets await the announcement, the global tech industry is bracing for potential disruptions and new tensions in the international trade landscape.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

Nvidia expands AI chip production in the US amid political pressure and global shifts

Nvidia is significantly ramping up its presence in the United States by commissioning over a million square feet of manufacturing space in Arizona and Texas to build and test its powerful AI chips. The tech giant has begun producing its Blackwell chips at TSMC facilities in Phoenix and is developing large-scale ‘supercomputer’ manufacturing plants in partnership with Foxconn in Houston and Wistron in Dallas.

The company projects mass production to begin within the next 12 to 15 months, with ambitions to manufacture up to half a trillion dollars’ worth of AI infrastructure in the US over the next four years. CEO Jensen Huang emphasised that this move marks the first time the core components of global AI infrastructure are being built domestically.

He cited growing global demand, supply chain resilience, and national security as key reasons for the shift. Nvidia’s decision follows an agreement with the Trump administration that helped the company avoid export restrictions on its H20 chip, a top-tier processor still eligible for export to China.

Nvidia joins a broader wave of AI industry leaders aligning with the Trump administration’s ‘America-first’ strategy. Companies like OpenAI and Microsoft have pledged massive investments in US-based AI infrastructure, hoping to secure political goodwill and avoid regulatory hurdles.

Trump has also reportedly pressured key suppliers like TSMC to expand American operations, threatening tariffs as high as 100% if they fail to comply. Despite the enthusiasm, Nvidia’s expansion faces headwinds.

A shortage of skilled workers and potential retaliation from China—particularly over raw material access—pose serious risks. Meanwhile, Trump’s recent moves to undermine the Chips Act, which provides critical funding for domestic chipmaking, have raised concerns about the long-term viability of US semiconductor investment.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

US exempts key electronics from China import taxes

Smartphones, computers, and key tech components have been granted exemption from the latest round of US tariffs, providing relief to American technology firms heavily reliant on Chinese manufacturing.

The decision, which includes products such as semiconductors, solar cells, and memory cards, marks the first major rollback in President Donald Trump’s trade war with China.

The exemptions, retroactively effective from 5 April, come amid concerns from US tech giants that consumer prices would soar.

Analysts say this move could be a turning point, especially for companies like Apple and Nvidia, which source most of their hardware from China. Industry reaction has been overwhelmingly positive, with suggestions that the policy shift could reshape global tech supply chains.

Despite easing tariffs on electronics, Trump has maintained a strict stance on Chinese trade, citing national security and economic independence.

The White House claims the reprieve gives firms time to shift manufacturing to the US. However, electronic goods will still face a separate 20% tariff due to China’s ties to fentanyl-related trade. Meanwhile, Trump insists high tariffs are essential leverage to renegotiate fairer global trade terms.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

China halts rare earth exports in trade war escalation

Exports of critical rare earth minerals and magnets from China have ground to a halt following new export restrictions, threatening global supply chains across the semiconductor, automotive, defence, and energy sectors.

The suspension took effect on 4 April, after Beijing imposed strict new licensing requirements in response to steep United States tariffs introduced by President Donald Trump.

China dominates the global supply of rare earth materials such as dysprosium and terbium, which are essential for manufacturing everything from electric vehicles to drones and missiles.

Industry insiders say licence applications could take up to several months to process, sparking fears of shortages if the halt persists beyond two months. Traders estimate shipments might resume after at least 60 days, but delays could stretch further.

Trump defended the tariffs, claiming they are necessary to address trade imbalances, particularly with China. He hinted at further tariffs targeting semiconductors and electronic devices, while his commerce secretary confirmed that smartphones and laptops may also be subject to new levies.

Critics, including Senator Elizabeth Warren, have condemned the approach, warning it will lead to confusion and instability in global markets.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

China and Russia turn to Bitcoin for energy transactions

China and Russia have reportedly started using Bitcoin for settling certain energy transactions. It is a development that signals a shift away from the US dollar in global trade.

The move comes amid growing trade tensions and increasing interest in decentralised digital assets. According to Matthew Sigel, Head of Digital Assets Research at VanEck, Bitcoin’s role in trade is evolving beyond speculation.

The report highlights a growing trend of using digital assets in practical commerce, particularly in energy markets. Bitcoin’s neutral and decentralised nature makes it an appealing option for countries facing financial restrictions.

The shift may reinforce Bitcoin’s role as a hedge against monetary instability as international players are seeking alternative settlement methods.

Bolivia also plans to use cryptocurrency for power imports, while EDF is exploring Bitcoin mining to monetise surplus electricity.

For more information on these topics, visit diplomacy.edu.

AI giant Nvidia rebounds but challenges remain

Shares in Nvidia soared by nearly 20 per cent following a 90-day suspension of new US tariffs, lifting Wall Street to one of its strongest single-day performances in decades. The tech giant, whose chips underpin much of the AI boom from tools like ChatGPT to drone technologies, added $440bn to its market value in just one session, underlining its pivotal role in the global AI race.

Despite the rally, serious concerns remain. While some tariffs were temporarily halted, President Donald Trump raised levies on Chinese imports to as high as 125 per cent. For Nvidia, whose supply chain relies heavily on advanced manufacturing in Asia, particularly Taiwan and South Korea, the move threatens to disrupt both costs and production timelines. Analysts caution that such trade friction could deter investment in AI infrastructure, which is still in early stages of commercial return.

Even with strong revenues and continued dominance in AI hardware, Nvidia faces growing headwinds. The firm’s recent share slump reflected broader anxiety over whether AI spending is peaking, alongside the rise of cheaper, open-source alternatives. Added pressure from high energy demands, regulatory risks, and tighter capital markets could further complicate growth. Industry watchers warn that tariffs may undermine the very conditions AI needs to flourish: stable supply chains, affordable power, and investor confidence.

For more information on these topics, visit diplomacy.edu.

Anker raises prices amid rising US tariffs

Chinese tech company Anker, one of Amazon’s largest sellers, has raised prices on a fifth of its products on the platform since last Thursday. The price hikes, averaging 18%, are a direct result of the recent increase in US tariffs on Chinese goods.

The majority of the price rises occurred after 7 April, when President Donald Trump imposed an additional 50% import duty on Chinese imports.

It follows a broader trend where US import tariffs on Chinese goods have now reached 145%, while Beijing retaliated by raising tariffs on US products to 125%.

In response, China’s largest cross-border e-commerce association warned that many Chinese businesses selling on Amazon are considering price hikes or may leave the US market altogether.

Anker, a major player in the e-commerce space since its founding in 2011, has leveraged its bargaining power to implement these price increases.

With 5,000 employees and annual revenues of 22.17 billion yuan ($3 billion), Anker is able to absorb some of the tariff pressure while many of its competitors face similar challenges.

The company has also hinted at expanding into non-US markets, including Europe and Southeast Asia, as it seeks to navigate the increasingly challenging trade environment.

Anker and Amazon did not immediately respond to requests for comment.

For more information on these topics, visit diplomacy.edu.

TikTok affair, China disagrees with Trump over $54B deal due to tariffs rise

The fate of TikTok hangs in the balance as China and the US trade moves over a potential deal to keep the app alive for its 170 million American users. 

On 9 April 2025, China’s commerce ministry declared that any sale of TikTok must pass its government’s strict review, throwing a wrench into negotiations just as President Donald Trump hinted that a deal remains within reach.

China’s stance is clear: no deal gets the green light without approval. 

The ministry stressed that TikTok’s sales must comply with Chinese laws, particularly those governing technology exports, a nod to a 2020 regulation that gives Beijing veto power over the app’s algorithm, the secret ingredient behind its viral success. 

The disagreement comes after Trump’s recent tariff hikes, which slapped a 54% duty on Chinese goods, prompting Beijing to push back hard. 

China had already signalled it wouldn’t budge on the deal following Trump’s tariff announcement, a move that doesn’t seem to give TikTok too much significance in a broader trade war.

Meanwhile, Trump, speaking on 9 April 2025, kept hope alive, insisting that a TikTok deal is ‘still on the table.’ He extended the deadline for ByteDance, TikTok’s Chinese parent, to find a non-Chinese buyer by 75 days, pushing the cutoff to mid-June after a near-miss on 5 April. 

The deal, which would spin off TikTok’s US operations into a new entity majority-owned by American investors, could have been nearly finalised before China’s objections stalled it. 

Investors, too, are on edge, with the US entity’s future clouded by geopolitical sparring. 

Trump’s optimism, paired with his earlier willingness to ease tariffs, shows he’s playing a long game, balancing national security fears with a desire to keep the app functional for its massive US audience.

Washington has long worried that TikTok’s Chinese ownership makes it a conduit for Beijing to spy on the Americans or sway public opinion, a concern that led to a 2024 law demanding ByteDance divest the app or face a ban. 

That law briefly shuttered TikTok in January 2025, only for Trump to step in with a reprieve. Now, with ByteDance poised to hold a minority stake in a US-based TikTok, the deal’s success hinges on China’s nod, a nod that looks increasingly elusive as trade tensions simmer. 

If China blocks the deal, it could set a precedent for other nations to tighten their grip on digital exports, radically reshaping governmental interdisciplinary approaches and cyberspace, posing a final question: will the internet, as we know it, remain as a globally unified societal enabler or it will divide into national space with new monopolies?

Tech stocks rally after Trump halts tariffs

Global stock markets experienced a significant surge following President Donald Trump’s announcement of a 90-day suspension on tariffs for several countries. The tech-heavy Nasdaq Composite Index soared over 12%, marking its second-best day ever and the most substantial gain since January 2001.

Leading technology firms saw remarkable recoveries. Apple’s shares jumped over 15%, achieving their best performance since January 1998, after enduring a severe four-day decline that erased nearly $800 million in market value.

Tesla and Nvidia also experienced substantial gains, rising 18% and 22% respectively, while Meta Platforms increased by 15%. Amazon, Microsoft, and Alphabet each posted gains of around 10%.

Asian markets mirrored this positive trend, with Japan’s benchmark index climbing more than 2,000 points shortly after the Tokyo exchange opened. Investors responded favourably to the tariff relief, anticipating reduced trade tensions and improved economic prospects.

Despite the optimism, concerns remain regarding ongoing trade disputes, particularly with China. While tariffs were paused for several nations, levies on Chinese imports were raised to 125%, potentially impacting companies with significant manufacturing operations in China, such as Apple.

Analysts caution that, despite the current market rally, the long-term implications of these trade policies warrant close monitoring.

For more information on these topics, visit diplomacy.edu.