China has enacted new regulations asserting state ownership over rare earth materials, critical for semiconductor production, with a rule effective from October 1. Additionally, on December 3, the Ministry of Commerce announced a ban on the export of dual-use items such as gallium, germanium, and antimony to the US. These moves are expected to impact industries reliant on these materials, especially solar cell production and semiconductor manufacturing.
As the world’s largest supplier of rare earths, China has long dominated the market due to its lax environmental regulations, which allow for large-scale extraction and refining. However, with many countries looking to reduce their dependency on China, the long-term effectiveness of these export restrictions may diminish. Nations like the US and Australia are expanding their rare earth production lines, and efforts to recycle rare earth materials are also gaining traction.
Despite these efforts, challenges remain in replicating China’s refining capabilities, as many countries are limited by technical and environmental obstacles. Notably, the US has partnered with Australia’s Lynas Corporation to build a rare earth extraction facility, aiming to strengthen its supply chain.
The future of the rare earth market may shift toward the development of substitute materials, although creating viable replacements is a time-consuming process. In this ongoing battle, China has already secured patents for some high-performance materials that could serve as alternatives, indicating that the competition could soon turn to technological innovation and patent rights.
President-elect Donald Trump hinted at allowing TikTok to continue operating in the US, at least temporarily, citing the platform’s significant role in his presidential campaign. Speaking to conservative supporters in Phoenix, Arizona, Trump shared that his campaign content had garnered billions of views on TikTok, describing it as a “beautiful” success that made him reconsider the app’s future.
TikTok’s parent company, ByteDance, has faced pressure from US lawmakers to divest the app over national security concerns, with allegations that Chinese control of TikTok poses risks to American data. The US Supreme Court is set to decide on the matter, as ByteDance challenges a law that could force divestment. Without a favourable ruling or compliance with the law, TikTok could face a US ban by January 19, just before Trump takes office.
Trump’s openness to TikTok contrasts with bipartisan support for stricter measures against the app. While the Justice Department argues that Chinese ties to TikTok remain a security threat, TikTok counters that its user data and operations are managed within the US, with storage handled by Oracle and moderation decisions made domestically. Despite ongoing legal battles, Trump’s remarks and a recent meeting with TikTok’s CEO suggest he sees potential in maintaining the platform’s presence in the US market.
Democratic Senator Ed Markey and Republican Senator Rand Paul are urging President Joe Biden to extend the January 19 deadline for ByteDance, the China-based owner of TikTok, to sell the app’s US assets or face a nationwide ban. The Supreme Court is set to hear arguments on January 10 regarding ByteDance’s legal challenge, which claims the law mandating the sale violates First Amendment free speech rights. In their letter to Biden, the senators highlighted the potential consequences for free expression and the uncertain future of the law.
The controversial legislation, signed by Biden in April, was passed due to national security concerns. The Justice Department asserts that TikTok’s vast data on 170 million American users poses significant risks, including potential manipulation of content. TikTok, however, denies posing any threat to US security.
The debate has split lawmakers. Senate Minority Leader Mitch McConnell supports enforcing the deadline, while President-elect Donald Trump has softened his stance, expressing support for TikTok and suggesting he would review the situation. The deadline falls just a day before Trump is set to take office on January 20, adding to the uncertainty surrounding the app’s fate.
The US Department of Commerce has asked Nvidia to investigate how its AI chips ended up in China despite ongoing export restrictions, The Information reported. In response, Nvidia has called on major distributors like Super Micro and Dell to conduct customer inspections in Southeast Asia. Nvidia chips, embedded in server products, have allegedly been smuggled to Chinese entities through various schemes, including duplicating or altering serial numbers.
Super Micro and Dell stated they strictly enforce export regulations and will terminate relationships with partners who violate these controls. Super Micro also confirmed it investigates unauthorised exports and complies with all US export laws.
These developments come as the Biden administration intensifies its crackdown on chip sales to China. Despite the broadened restrictions on high-end AI chips in 2023, Chinese institutions reportedly acquired Nvidia chips through resellers. Earlier this month, the US further limited semiconductor exports to 140 additional companies, underscoring efforts to control the flow of advanced technology to China.
According to sources familiar with the matter, Apple is in early talks with Tencent and ByteDance to integrate their AI models into iPhones sold in China. This comes as Apple rolls out OpenAI’s ChatGPT in other markets, but regulatory restrictions in China prevent the availability of the chatbot there. To comply with local rules and counter the declining market share, Apple is exploring partnerships with Chinese firms that already have government-approved AI models.
Potential partners include ByteDance’s Doubao and Tencent’s Hunyuan, part of a growing field of AI services in China. Although Apple previously discussed using Baidu’s Ernie model, reports suggest technical disagreements halted progress. Baidu’s shares dropped following news of these challenges, while Tencent’s stock saw a boost.
Apple faces increasing pressure in China’s competitive smartphone market, where domestic rivals like Huawei are surging ahead. Huawei’s recent AI-equipped models have attracted consumers, contributing to a 42% spike in sales. In contrast, Apple’s third-quarter sales dipped slightly, underscoring the need for a successful AI integration strategy to regain momentum in China.
TikTok and its parent company, ByteDance, have asked the Supreme Court to halt a US law that would force ByteDance to sell TikTok by 19 January or face a nationwide ban. The companies argue that the law violates the First Amendment, as it targets one of the most widely used social media platforms in the United States, which currently has 170 million American users. A group of TikTok users also submitted a similar request to prevent the shutdown.
The law, passed by Congress in April, reflects concerns over national security. The Justice Department claims TikTok poses a threat due to its access to vast user data and potential for content manipulation by a Chinese-owned company. A lower court in December upheld the law, rejecting TikTok’s argument that it infringes on free speech rights. TikTok maintains that users should be free to decide for themselves whether to use the app and that shutting it down for even a month could cause massive losses in users and advertisers.
With the ban set to take effect the day before President-elect Donald Trump’s inauguration, TikTok has urged the Supreme Court to decide by 6 January. Trump, who once supported banning TikTok, has since reversed his position and expressed willingness to reconsider. The case highlights rising trade tensions between the US and China and could set a precedent for other foreign-owned apps operating in America.
Taiwan is in discussions with Amazon to potentially collaborate on the company’s Kuiper satellite broadband system, according to Technology Minister Wu Cheng-wen. The Kuiper project, designed to deploy a constellation of over 3,000 satellites, is seen as a crucial step for Taiwan to ensure robust communication infrastructure amid escalating tensions with China. The island has been exploring satellite internet solutions to maintain connectivity in the event of a conflict, drawing lessons from Ukraine’s use of Starlink during wartime.
Minister Wu noted that Taiwan’s existing satellite bandwidth is limited and described Amazon’s Kuiper as the most advanced option currently under development. While Taiwan is considering partnerships with other Western providers, Amazon’s readiness makes it a leading candidate. Amazon has not yet commented on the discussions.
Taiwan has also been launching its own satellites using foreign rockets but aims to establish a domestic launch pad by 2029. A location in the southeast of the island is being evaluated, with a decision expected by March. This initiative underscores Taiwan’s commitment to building self-reliant space capabilities while safeguarding its communication networks in an increasingly volatile geopolitical climate.
For eight years, TeraFeng has shared her glamorous Shanghai lifestyle with over 500,000 followers on Chinese social media. Her audience, primarily financially independent urban women, has proven to be a valuable market for high-end and niche brands. In recent months, Feng’s switch to livestream selling on Xiaohongshu, a platform similar to Instagram, has seen her sell products ranging from luxury suits priced at 15,000 yuan ($2,060) to premium rice costing 60 yuan per kilogram.
Xiaohongshu has long been used for lifestyle inspiration but has struggled to find success in e-commerce. As Chinese consumers on other platforms like Taobao and Pinduoduo hunt for discounts, Xiaohongshu attracts a different crowd — users willing to spend on quality and aspiration-driven products. Influencers and brands are embracing this trend, with companies like L’Oreal and Coach launching stores and partnering with livestream hosts to drive sales. These livestreams adopt a relaxed, conversational style, contrasting the aggressive sales tactics on other platforms.
Brands are seeing tangible results. For example, Ms Min, an independent fashion label, experienced a spike in sales after actress Dong Jie featured it in a livestream. Marketing agencies like Magic Advertising, which works with luxury clients like Max Mara and LVMH, are also eyeing Xiaohongshu for growth. While analysts predict the platform’s annual sales could surpass $100 billion by 2025, experts suggest it will remain a niche player compared to China’s e-commerce giants like Tmall and JD.com. Nonetheless, Xiaohongshu’s ability to connect luxury brands with eager, affluent consumers marks it as a growing force in China’s online retail landscape.
The incoming Trump administration is set to explore ways to impose higher costs on adversaries and private actors behind cyber attacks, according to Representative Mike Waltz, the pick for national security adviser. Waltz’s statement follows US allegations that a widespread Chinese cyberespionage operation, known as Salt Typhoon, targeted senior American officials and stole significant amounts of metadata.
The White House has revealed that at least eight telecommunications and infrastructure firms in the US were compromised during this campaign. While Waltz did not specify potential actions against Salt Typhoon, he emphasised the need to go beyond defensive measures and start taking offensive actions to deter cyber threats.
Waltz also highlighted the role of the US tech industry in strengthening national defence and exposing vulnerabilities in adversaries. Meanwhile, Chinese officials continue to deny involvement, dismissing the accusations as disinformation and asserting that Beijing opposes cyber attacks in all forms.
Nvidia has refuted social media claims suggesting it plans to limit chip supplies to China, categorically stating that these rumours are false. In a post on a popular Chinese platform, the company reaffirmed its dedication to providing top-quality products and services to Chinese customers, highlighting the importance of the region to its business.
The denial comes at a time of heightened scrutiny over global semiconductor trade, with geopolitical tensions influencing market dynamics. Nvidia’s statement emphasises its continued focus on meeting the needs of its Chinese clientele, despite speculation circulating online.
This clarification is expected to reassure stakeholders in one of Nvidia’s most significant markets, where demand for advanced chips continues to grow, particularly in artificial intelligence and high-performance computing sectors. The company’s swift dismissal of the claims underscores its commitment to maintaining strong ties with China.
