China Watch: PRC Activity Tracker

HP has entered into a new global, multiyear cross-licensing agreement to license certain Wi-Fi patents from Huawei. This deal is notable because the licensing continues despite the Chinese firm retaining its U.S. entity list status.

China has provided Tehran with an economic lifeline due to being its primary buyer of oil. Furthermore, Xi is portrayed as unconcerned about assisting Trump in resolving a conflict that is diverting US resources away from Asia.

Hawaii issued a warning concerning fentanyl-laced cocaine. Cocaine has been implicated in a cluster of overdoses on Oahu, though the source suggests this powerful stimulant may not be the only drug behind the rash of resuscitations.

HP has partnered with Huawei for licensing the Chinese company's WiFi technology. This collaboration is observed as a sign of adopting Huawei's technology outside China. The partnership occurs despite U.S. restrictions that limit the company from working with American suppliers, such as Google.

The DEA urges parents and teachers to educate children on fentanyl risks as the school year starts, stating that fentanyl is a leading cause of death for Americans aged 18 to 45. Officials warn that drug dealers are using coded methods via emojis and cash apps like Venmo or Zelle, increasing the danger even within homes. The agency emphasizes that only prescriptions obtained from licensed pharmacies should be taken.

China has warned the US that it could retaliate over Iran sanctions. In related news, an Nvidia employee was charged in Taiwan with smuggling chips into China and Canada. Furthermore, the content mentions the announcement of $20bn retaliatory tariffs.

Torsten Slok described a new economic threat as "China Shock 2.0," arguing that China is increasingly exporting high-tech goods like EVs and semiconductors. This differs from earlier disruptions because China now controls cutting-edge production itself, challenging U.S. companies in higher-value industries. The Fed noted this shift from labor-intensive goods to capital- and tech-intensive exports.

China needs U.S. dollars but is actively building alternative financial systems like CIPS to hedge against potential sanctions from Washington. The U.S. maintains the ability to pressure Chinese banks, particularly regarding Iran access, through its established financial system.

Taiwan charged nine employees from Nvidia and Super Micro with smuggling AI servers to China. Prosecutors allege two of these defendants made false claims to secure approval for 130 AI servers, misleading authorities about the hardware's final destination.

Beijing has warned that China will take 'all necessary measures' if Washington continues to expand its crackdown on business dealings involving Tehran. The warning concerns U.S. sanctions placed upon Iran, suggesting potential Chinese retaliation over the actions taken by the United States.

Following latest sanctions from the Trump administration targeting businesses in China and Hong Kong, Beijing threatened retaliation against the US while confirming its cooperation with Iran. Bessent unveiled new sanctions that focus on secondary penalties for companies and countries continuing to do business with Iran.

Following sanctions from the Trump administration targeting businesses in China and Hong Kong, Beijing threatened to retaliate against the US. Beijing further signaled that it will not reduce its cooperation with Iran.

An Nvidia employee has been charged with smuggling advanced chips into China. Prosecutors identified a Taiwan-based manager as the central figure in this scheme, which involved US semiconductor maker’s AI servers.

The Trump administration's sanctions targeting Iran have swept up businesses in China and Hong Kong. However, the latest sanctions salvo reportedly avoided targeting major Chinese financial institutions.

US robotics leaders have voiced significant concerns that China possesses a critical manufacturing advantage for essential hardware components used in robotics. Experts note that while American companies lead in developing robotic software or 'brains,' they are heavily reliant on China for physical parts such as motors and sensors due to cost efficiency and capacity. Policymakers view this dependence as a major bottleneck that threatens America's ability to compete globally in the emerging industry.

The U.S. is considering tariffs of 7.5% on China due to overcapacity before Xi visits. This proposed measure could restore Trump's second-term duties on China to approximately 20%.

President Donald Trump is reportedly considering a 7.5% tariff on China to penalize it for flooding the market with underpriced goods, a move that officials say will not jeopardize the trade truce or the planned summit with Xi Jinping. This potential tariff follows formal White House investigations initiated under Section 301 of the Trade Act of 1974, launched after a Supreme Court decision struck down Trump’s previous high-tariff scheme.

Donald Trump is considering levying a new tariff on China to penalize the country for flooding global markets with underpriced goods, with reports indicating a potential 7.5% rate. This move is described as a calibrated effort by the White House to navigate around previous Supreme Court decisions and continuing formal investigations into unfair trade practices in various nations, including the European Union.

Donald Trump is planning to impose a new tariff on China. This action aims to penalize Beijing because it is reportedly flooding the global market with underpriced goods.

Donald Trump is moving toward levying a new tariff on China to penalize the world’s second-largest economy for allegedly flooding global markets with underpriced goods. The proposed 7.5% tariff would be a calibrated effort by the White House to work around a previous Supreme Court decision and could be implemented using Section 301 of the Trade Act of 1974. This move occurs amidst ongoing U.S. investigations into other economies, including the European Union and Japan.