China

Temu and Shein to raise US prices due to new tariffs

Fast fashion giants Temu and Shein have warned US shoppers to expect price hikes from next week, as sweeping new tariffs on Chinese imports come into effect under Donald Trump’s trade policy.

Both companies will lose access to the ‘de minimis’ exemption, which has allowed packages under $800 to enter the US duty-free. That change, taking effect from 2 May, will significantly raise costs for low-cost retailers who depend on cheap cross-border shipments.

The tariffs, which now reach up to 145%, are part of Trump’s escalating trade war with China. His revised plans impose a tax of $75 per item, rising to $150 by June, for shipments that were previously exempt.

Shein has told customers its operating expenses have risen and prices will be adjusted from 25 April in an effort to maintain product quality while absorbing the new costs.

In response to the tariffs and likely slowdown in US demand, both companies have also scaled back digital advertising.

According to Sensor Tower, Temu’s average US ad spend across major platforms dropped by 31% over two weeks, while Shein’s spending fell 19%.

The tariffs are expected to reshape fast fashion in the US, though some experts believe prices may still remain competitive compared to domestic alternatives.

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AMD warns of financial hit from US AI chip export ban

AMD has warned that new US government restrictions on exporting AI chips to China and several other countries could materially affect its earnings.

The company said it may face charges of up to $800 million related to unsold inventory, purchase commitments, and reserves if it fails to secure export licences for its MI308 GPUs, now subject to strict control measures.

In a filing to the US Securities and Exchange Commission, AMD confirmed it would seek the necessary licences but admitted there is no guarantee they will be granted.

The move follows broader export restrictions aimed at protecting national security interests, with US officials arguing that unrestricted access to advanced chips would weaken the country’s strategic lead in AI, instead of preserving it.

AMD’s stock dropped around 6% following the announcement. Competitors are also feeling the impact. Nvidia expects charges of $5.5 billion from similar restrictions, and Intel’s Gaudi hardware line has reportedly been affected as well.

The US Commerce Department has defended the move as necessary to safeguard economic and national interests.

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Beijing blames NSA for hacking Asian Games systems

Chinese authorities have accused three alleged US operatives of orchestrating cyberattacks on national infrastructure during the Asian Games in Harbin this February.

The individuals, identified by Harbin police as Katheryn A. Wilson, Robert J. Snelling, and Stephen W. Johnson, are said to have worked through the US National Security Agency (NSA).

The attacks reportedly targeted systems critical to the Games’ operations, including athlete registration, travel, and competition management, which held sensitive personal data.

Chinese state media further claimed that the cyber intrusions extended beyond the sporting event, affecting key infrastructure in Heilongjiang province. Targets allegedly included energy, transport, water, telecoms, defence research institutions, and technology giant Huawei.

Authorities said the NSA used encrypted data to compromise Microsoft Windows systems in the region, with the aim of disrupting services and undermining national security.

The Foreign Ministry of China denounced the alleged cyberattacks as ‘extremely malicious,’ urging the United States to halt what it called repeated intrusions and misinformation.

The UD Embassy in Beijing has yet to respond, and the allegations come amid ongoing tensions, with both nations frequently accusing each other of state-backed hacking.

Only last month, the US government named and charged 12 Chinese nationals in connection with cyberespionage efforts against American interests.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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