Apple has been working to catch up with Microsoft, Google, OpenAI, Anthropic, and others in the AI space, introducing its intelligence platform in 2024. Basic functionality relies on the company’s own AI models, while advanced functionality relies on OpenAI models.

According to The Information, via TechCrunch, Apple considered a deal with DeepSeek before rejecting it in favor of a deal with Alibaba.

As AppleInsider points out, Alibaba may have presented a better option for Apple, given the wealth of data the company has access to. Alibaba also has deep ties to the West, given its close relationship with Yahoo over the years. That connection may have made the comapny a more appealing prospect for partnership than a company like DeepSeek.

Either way, with this latest deal, Apple is signaling just how serious it is about competing in the AI space and making Apple Intelligence a major player in the market.

Huawei sold Honor in late 2020 after U.S. sanctions against the company made it almost impossible to continue to effectively in the smartphone market. As part of the sanctions against some Chinese smartphone makers, Google is prohibited from providing its software and services to such companies, including its Gemini AI.

According to AndroidCentral, Honor has found a solution, tapping DeepSeek to power its smartphone AI assistant, YOYO. The move is a natural development, given that DeepSeek is both China-based and open source. What’s more, the fledgling AI service is challenging established leaders, such as OpenAI, Google, and Anthropic.

Honor’s decision, as well as DeepSeek’s emergence, continue to raise questions about China’s ability to compete in the AI space, as well as the effectiveness of U.S. efforts to stifle that competition.

Senator Josh Hawley has introduced “Decoupling America’s Artificial Intelligence Capabilities from China Act of 2025,” a bill that would criminalize the use of DeepSeek. The bill is designed to prohibit U.S. citizens from advancing China’s AI capabilities.

A bill to amend title 18, United States Code, to prohibit United States persons from advancing artificial intelligence capabilities within the People’s Republic of China, and for other purposes.

If passed, the bill would criminalize the import/export of AI technology from China. As a result, it is likely that the mere use of Chinese AI models, such as DeepSeek, would be considered a criminal act under the new law.

The bill includes stiff penalties for companies and individuals alike.

IN GENERAL.—A United States per19 son that violates section 2742 that is not an individual shall—

• (i) be fined not more than $100,000,000; and
• (ii) forfeit any license, contract, subcontract, grant, or public benefit awarded by any Federal agency.

ASSOCIATES OF ENTITIES.—An officer, director, partner, agent, or employee that violates section 2742 shall—

• (i) be fined not more than $1,000,000; and
• (ii) forfeit any license, contract, subcontract, grant, or public benefit awarded by any Federal agency.

INDIVIDUALS.—A United States person who is an individual that violates section 2742 shall—

• (A) be fined not more than $1,000,000; and
• (B) forfeit any license, contract, subcontract, grant, or public benefit awarded by any Federal agency.

If Hawley’s bill passes, it would be a marked departure from previous U.S. policy. Previous bans of Chinese apps and services, such as TikTok, have never gone so far as impose penalties on individual users. The fact that this bill would do that underscores just how much U.S. lawmakers consider China’s AI capabilities a threat.

A New Era of Affordable AI

Wood began by discussing how DeepSeek’s approach could transform the AI landscape. “I think what it’s telling us is the cost of innovation is collapsing, which it has been doing,” she stated, emphasizing that the cost of AI training and inference has been dropping at an annual rate of 75% and 85-90% respectively. This cost reduction shifts the focus from training chips, where Nvidia has been dominant, towards inference, where competition is more intense.

Implications for the Tech Stack

The shift has broad implications for the tech stack. “We do think there are share shifts taking place within the tech stack,” Wood remarked, hinting at an upcoming report from Ark where they will delve deeper into these changes. She predicted that companies like Palantir, which she holds in her portfolio, would gain significant market share in platform-as-a-service, while infrastructure-as-a-service might see stabilization, and software-as-a-service could experience a slight decline in share, though all sectors are expected to grow rapidly due to the cost efficiencies brought by DeepSeek.

Global Innovation and U.S.-China Dynamics

Wood also highlighted the broader global impact of such technological advancements. “Lowering costs is great for the world. The collapse in the cost of innovation should help all regions of the world,” she said, suggesting that this development could be seen as part of Xi Jinping’s vision for “new productive forces” in China, moving from a focus on margins to one on innovation.

Regarding U.S.-China relations under President Donald Trump, Wood drew an analogy to Nixon’s visit to China, suggesting that Trump’s approach might similarly lead to unexpected positive outcomes. “I think he likes the competition,” she noted, indicating that Trump’s policies could foster a new wave of technological competition beneficial for global innovation.

Regulation and Market Dynamics

On the regulatory front, Wood expressed concerns about over-regulation in the nascent stage of AI technology. “Now is not the time to regulate it heavily,” she argued, pointing out that AI is at a stage similar to the Internet in the early ’90s. She believes that the market’s current concentration in a few mega-cap tech firms might give way to a broader-based bull market, especially with regulatory clarity expected under Trump’s administration.

Crypto and Financial Innovation

Wood, known for her bullish stance on cryptocurrencies, discussed the potential for regulatory clarity under Trump, which she sees as a catalyst for Bitcoin and other digital assets. “I think we will get significant clarity in terms of regulation,” she predicted, noting that cryptocurrencies could become a mainstream financial tool with the support of all three branches of the U.S. government.

Stablecoins and the Future of Money

Finally, she touched on the rise of stablecoins, viewing them not as a threat to the U.S. dollar but as an enhancement. “These stablecoins are all backed by Treasury securities, which de facto they’re backed by the dollar,” Wood explained, advocating for a coexistence rather than a replacement of traditional currencies.

Cathie Wood’s insights paint a picture of a competitive tech arena where the barriers to innovation are diminishing, potentially ushering in an era of widespread technological prosperity, reshaping economic structures, and enhancing global competition in technology.

Until now, DJI was voluntarily using built-in geofencing to prevent its drones from operating over No-Fly Zones, such as the White House, government buildings, prisons, power plants, and runways. The geofencing would also prevent the drones from flying over public emergencies, such as the LA wildfires.

DJI says a new update will now warn users of No-Fly Zones instead of enforcing them.

With this update, DJI’s Fly and Pilot flight app operators will see prior DJI geofencing datasets replaced to display official Federal Aviation Administration (FAA) data. Areas previously defined as Restricted Zones (also known as No-Fly Zones) will be displayed as Enhanced Warning Zones, aligning with the FAA’s designated areas. In these zones, in-app alerts will notify operators flying near FAA designated controlled airspace, placing control back in the hands of the drone operators, in line with regulatory principles of the operator bearing final responsibility.

DJI says it is making the decision due to advancing regulation and drones become more widespread.

When DJI first introduced the GEO system in 2013, consumer drones were still a relatively novel technology, and formal drone flight rules and regulations were sparse. The geofencing system was created as a voluntary built-in safety feature to help foster responsible flight practices and prevent DJI drone operators from unintentionally flying in restricted airspace, such as around government buildings, airports, or prisons.

Since then, global regulations and user awareness have evolved significantly, with a greater focus on geo-awareness and Remote ID solutions which makes detection and enforcement much easier. National aviation authorities, including the European Aviation Safety Authority (EASA) in the EU, the UK Civil Aviation Authority (CAA), and the FAA in the U.S., have established comprehensive geographical zones for unmanned aircraft systems (UAS) and enforce drone regulations.

DJI says its new update, in which No-Fly Zones are not enforced, has been active in other countries since the beginning of 2024, but is just now rolling out to US customers. The company reminds users to obey the law and consult with the FAA in order to comply with No-Fly and No Drone Zones.

DJI reminds pilots to always ensure flights are conducted safely and in accordance with all local laws and regulations. For flights conducted in Enhanced Warning Zones, drone operators must obtain airspace authorization directly from the FAA and consult the FAA’s No Drone Zone resource for further information.

Interestingly, a DJI drone was just involved in an incident in which it interfered with firefighters’ efforts to combat the LA wildfires, colliding with and damaging a Super Scooper plane used to drop water on the fires. The incident serves as a stark example of why DJI’s plan is likely to backfire in a spectacular fashion.

The Political Angle

The timing of DJI’s changing policy is also interesting from a political standpoint. The company has increasingly been the target of regulations and legislation aimed at prohibiting the sale of its drones within the US over national security concerns.

“The new Cybersecurity and Infrastructure Security Agency report makes clear that Communist Chinese drones present a legitimate national security risk to our critical infrastructure and must be banned from the U.S.,” said representatives Elise Stefanik and Mike Gallagher, said the co-authors of the Countering CCP Drones Act. “The CCP has subsidized drone companies such as DJI and Autel in order to destroy American competition and spy on America’s critical infrastructure sites. We must ban CCP-backed spy drones from America and work to bolster the U.S. drone industry.”

DJI’s decision is a perplexing one from a company who’s fate is on the chopping block in the US. Conventional wisdom would suggest the company would be doing everything possible to appease lawmakers. Instead, DJI is doubling down on the very thing that is already a concern for lawmakers and first-responders alike.

Akamai is one of the leading CDN providers in the world, and surprised the industry with an announcement that it was pulling out of China. Like many American companies, Akamai has had a presence in China for some time, but the company has come to the conclusion that it can no longer operate within the country.

According to The Register, Akamai sent an email to customers and partners, saying it has commitment to providing world-class delivery and security solutions” and that “effective June 30, 2026, all China CDN services will reach their decommission date.”

Moving forward, customers can either move to a China-based CDN provider or have their content move to some of Akamai’s servers outside of China.

Akamai’s decision underscores the challenges American companies face operating in China, especially in the current geopolitical environment. With the US and China trading barbs and restricting various imports and exports from each, companies are caught in the middle.

Akamai’s citing security as one of the reasons for its decision is an interesting choice, and further highlights the reputation that China has gained and the issues that reputation poses for companies looking to do business within the country. Beijing-backed hacking groups have been increasing their attacks on US cybersecurity infrastructure, with the Salt Typhoon group responsible for the “worst telecom hack in our nation’s history — by far,” according to Senator Mark R. Warner.

Akamai clearly believes the time has come when continuing to operate within China is no longer worth the cost.

The US has been working for years to block China’s access to advanced chip technology, using its export restrictions to prevent US and international companies that rely on US technology from exporting the latest tech to China. While the sanctions originally targeted a limited number of companies, such as Huawei and ZTE, the US Commerce Department has expanded that list to include an additional 140 companies.

In response, according to AP News, China has banned exports of antimony, gallium, germanium, and other materials used in various high-tech and military applications. The country is the world’s main source of gallium and germanium. The two materials are used in semiconductors for the automotive and mobile industries. Antimony is a key component in batteries, as well night-vision products, nuclear weapons, and flame retardants. As such, a ban on exports to the US could have a significant impact on the US tech industry.

China’s Foreign Ministry took the opportunity to condemn the latest action by the US.

“China has lodged stern protests with the U.S. for its update of the semiconductor export control measures, sanctions against Chinese companies, and malicious suppression of China’s technological progress,” Lin Jian, Chinese Foreign Ministry spokesperson, said Tuesday.

“I want to reiterate that China firmly opposes the U.S. overstretching the concept of national security, abuse of export control measures, and illegal unilateral sanctions and long-arm jurisdiction against Chinese companies,” Lin said.

China is already taking measures to secure its ability to make advanced semiconductors, making a concerted effort to recruit semiconductor engineers from the West. The move is already drawing attention from intelligence agencies..

The situation is not likely to improve in the coming months, with the incoming Trump administration promising steep tariffs on goods from China, which will likely lead to additional retaliatory export bans.

According to a report by The Wall Street Journal, German intelligence officials have been investigating an increase in attempts by Chinese firms to recruit personnel with access to Western semiconductor secrets. In particular, headhunters for Huawei were making a concerted effort to recruit employees from Zeiss SMT.

The US and its allies have engaged in a multi-year effort to restrict China’s access to the most advanced semiconductor technology. The US has used its export control regulation to restrict US firms and any firms worldwide that rely on US technology to make their products from exporting advanced chip tech to China.

Huawei, along with ZTE and a few others, has felt the brunt of the restrictions. The Commerce Department recently began preparing new restrictions that would impact 200 additional Chinese tech firms.

Faced with an ever-narrowing opportunity to remain competitive in the computer, mobile, and AI space, China clearly believes its best option is to recruit the engineers and personnel needed to be able to compete on its own merit, rather than rely on chip imports.

Moving forward, Western governments will likely have to address the issue directly if they intend on maintaining a technological lead over China.

The US has been working to restrict China’s access to advanced semiconductor technology, especially with the advent of AI. As a result, some of the countries most prestigious companies are already restricted from accessing advanced technology made in whole or in part with US intellectual property.

According to a report by Reuters, the Commerce Department is preparing to significantly expand its list of restricted companies, adding up to 200 additional companies. The new regulations are expected “prior to the Thanksgiving break.”

While many policies change with an administration change, this policy is likely to survive the transition from the Biden to Trump administration. In his previous term as US President, Trump tried to ban TikTok and was critical of China and its tech industry. Trump has also promised tariffs on goods from China, as high as 50%.

As a result, if the new regulations are pushed through, it’s likely they will survive—and possibly be expanded even more—under Trump’s second administration.

The US and its allies have been working to cut off Chinese companies from advanced tech, especially advanced semiconductors. With AI quickly shaping up to the be next battleground for tech companies around the world, there is a growing effort to cut Chinese companies off from the technology they need to be competitive.

Huawei has been one of the companies most targeted by sanctions but, according to Reuters, TSMC discovered that one of its chips was found in a Huawei AI processor. In response, TSMC reported the finding to the US Commerce Department, leading to the Commerce Department ordering the company to halt chip shipments to Chinese companies.

“TSMC has had regular discussions with the government on export control issues and has made it clear that it will comply with domestic and international regulations,” Taiwan’s economy ministry said in a statement to Reuters.

The US is trying to determine what companies may be working to help Huawei and other blacklisted companies thwart restrictions. In the meantime, the crackdown is sure to impact a variety of companies and industries, further setting back China’s tech industry.

News broke in late July that the Commerce Department was preparing to implement rules to restrict Chinese software in US automobiles, with reports indicating the rules could be unveiled as early as August.

Tune in to our discussion on banning Chinese auto parts, including software:

“We’re looking at a few components and some software – not the whole car – but it would be some of the key driver components of the vehicle that manage the software and manage the data around that car that would have to be made in an allied country,” Alan Estevez, export controls chief, said at the time.

“A car is a very scary thing. Your car knows a lot about you. Your car probably gets a software update, whether it’s an electric vehicle or an autonomous combustion engine vehicle,” he added.

“A modern car has a lot of software in it. It’s taking lots of pictures. It has a drive system. It’s connected to your phone. It knows who you call. It knows where you go. It knows a lot about you.”

While August came and went with no rules, The Information is reporting that the Commerce Department could unveil new rules as early as Monday, rules that will prohibit Chinese software and hardware in connected and autonomous vehicles.

China’s automotive industry has been a growing concern for lawmakers, with the Biden administration enacting new tariffs on the import of Chinese automobiles in the first half of 2024. Officials and experts are concerned about Chinese vehicle imports for two reasons:

• Beijing has subsidized its EV auto industry, giving it an unfair competitive advantage again other automakers. If Chinese automakers gain a foothold in the US, it could spell doom for the American auto industry.
• An even bigger concern is the security implications of Chinese autos having unrestricted access to American roads and driver data. US automakers have recently faced scrutiny and lawsuits for collecting a mass quantity of data on drivers. Lawmakers are concerned about the amount of data Chinese autos could collect, both on drivers and on their surrounds. Given that Chinese companies are legally obligated to aid Beijing in their surveillance and espionage efforts, Chinese vehicles on American roads could pose a serious national security threat by recording information about infrastructure and sensitive locations.

Given the concerns lawmakers have, it’s not surprising the Commerce Department is preparing to issue rules to restrict Chinese automotive components.

The corporate law, part of China’s broader strategy to strengthen its influence over foreign companies, could give Beijing unprecedented access to sensitive information held by U.S. corporations. According to sources familiar with the matter, these “representatives” are likely to have strong ties to Chinese authorities or even be active CCP members. This setup has sparked concern over intellectual property theft, surveillance, and coercion of employees.

Espionage Fears and National Security Risks

The inclusion of employee representatives within corporate boards raises significant security concerns, especially for tech giants like Microsoft, which employs over 10,000 people in China. One anonymous U.S. House aide explained, “They can tell a [Chinese intelligence] agent, ‘This is the person you need to talk to. If you want to coerce them, here’s who they are… I have access to employee data. This is their wife. This is where they live. This is where their kid goes to school.’”

Paul Rosenzweig, a former Homeland Security official, warned that China’s strategy has shifted from external control of corporations to embedding operatives internally. “Now they’re adding an internal control, an employee representative. If you wanted to be ungenerous, you could call him a Communist Party spy,” he said.

Microsoft in the Crosshairs

Microsoft’s presence in China is under heightened scrutiny, not only because of the number of employees it has in the country but also because of the nature of its software, which is deeply integrated into critical infrastructure in the United States. The company has already faced significant cyber threats from Chinese hackers. Last year, Chinese cyber actors infiltrated the email accounts of Commerce Secretary Gina Raimondo and other U.S. officials through Microsoft systems, exacerbating the concerns surrounding the company’s operations in China.

Microsoft executive Brad Smith, during a congressional hearing earlier this year, suggested that the company is largely immune from certain Chinese laws. “There are two types of countries in the world,” Smith said. “Those that apply every law they enact, and those who enact certain laws but don’t always apply them. And in this context, China, and that law, is in the second category.”

However, this stance has not comforted lawmakers. Rep. Carlos Gimenez (R-Fla.) warned that the company’s entanglements in China are becoming increasingly perilous, saying, “Sooner rather than later, all of these corporations are going to find that they’re going to be absorbed into the CCP and into China.” He urged firms to extricate themselves from the region, highlighting the potential dangers of continuing operations under the new legal framework.

Broader Implications for Foreign Companies

The new corporate law could apply to a range of foreign firms beyond Microsoft. Other multinational corporations, particularly those in technology and defense-related industries, are likely to face similar risks. The law’s provisions allow the CCP to wield greater control over internal corporate affairs, potentially giving China an edge in technology transfers and intellectual property theft.

The law’s timing is particularly concerning given that U.S. firms, including Microsoft, are developing advanced technologies like artificial intelligence, which could be critical in maintaining global competitive advantage. According to a House aide, “The corporate law is one method through which China could put pressure on them to keep the AI lab… What they’re going to do is just steal all the data, every single bit of data.”

Political Responses

U.S. lawmakers have been vocal in their opposition to China’s growing influence over foreign businesses. Sen. Marsha Blackburn (R-Tenn.) described China’s latest corporate move as part of an ongoing strategy of intellectual property theft. “Beijing’s latest move, which will likely embed CCP officials further into companies, shows how far the government’s grasp extends,” she said.

Rep. John Moolenaar (R-Mich.), chairman of the House Select Committee on China, added that no company in China can be considered truly private. He warned American firms to be vigilant: “The Chinese Communist Party will settle for nothing less than complete control at your expense.”

Massive Intellectual Property Theft Concerns

China’s new corporate law represents a watershed moment in the country’s relationship with foreign businesses. By embedding CCP-linked representatives within corporate boards, the Chinese government is extending its reach into the internal workings of U.S. firms, raising concerns about security and intellectual property theft. For companies like Microsoft, which have long sought to balance their global interests, this latest development may force a critical reassessment of their presence in China.

As Derek Scissors, chief economist of the China Beige Book, noted, “The company law will be interpreted in whatever way the CCP deems fit at the time, so none of the revisions matter.” Firms now face an uncomfortable choice: adapt to China’s rules or risk exposure to espionage and coercion.

The US has been systematically working to limit China’s access to advanced semiconductor technology, as have many US allies. According to Bloomberg, the US has withdrawn licenses that allowed both American companies to continue selling some semiconductors to Huawei under certain circumstances. The chips in question were reportedly for Huawei phones and laptops.

“It’s blocking any chips sold to Huawei,” said House Foreign Affairs Committee Chairman Michael McCaul. “Those are two companies we’ve always worried about being a little too close to China.”

The move underscores the ongoing tensions between the US and China, tension which shows no sign of abating.

According to Nikkei Asia, Tesla drivers are increasingly being turned away from venues and premises that are run by or affiliated with the government. The list of places includes exhibition centers, cultural centers, local authority agencies, government affiliates, and highway operations, in addition to military bases that were already off limits.

“If you have a meeting there, the meeting organizer will actually give you notice ahead of time and ask that you don’t drive or hire a Tesla car,” one individuals said about the Grand Halls, a state-backed conference center in Shanghai’s North Bund district. “You cannot enter the venue with a Tesla car.”

There has been growing concern in China about data security as it pertains to the data Teslas collect. As Nikkei points out, Tesla has tried to address these concerns by opening a data center in China and promising that all data collected by Teslas in-country would be stored there, rather than be stored overseas.

The timing of the increased restrictions on Tesla is interesting, especially in light of Musk’s recent visit to China. During that visit, he and Premier Li Qiang discussed the company’s expansion in China, with Li Qiang praising Tesla’s contribution to the country’s EV market.

Despite the show of goodwill, it appears Tesla may be the latest casualty in the escalating tension between the US and China. The US recently passed legislation that would force Chinese company ByteDance to divest its US TikTok operations or face a ban, citing national security concerns. China has long warned that a ban on TikTok would would be met with retaliation.

If the US/China tensions continue to escalate, Tesla and its customers won’t be the last to face increased restrictions.

Musk’s journey to Beijing marks a pivotal moment for Tesla as it navigates China’s complex regulatory environment. By partnering with Baidu, known for its substantial advancements in mapping and autonomous driving technology, Tesla aims to integrate local expertise in navigating the regulatory landscape and refining its technology to meet stringent local standards.

Strategic Partnership with Baidu

The collaboration with Baidu is expected to enhance Tesla’s mapping and navigation capabilities, which are essential for operating its semi-autonomous driving technology. This move is seen as a strategic alignment with a local powerhouse to ensure the adaptation of Tesla’s technology with China’s unique geographic and regulatory requirements.

“Baidu’s deep understanding of Chinese road and traffic conditions will be invaluable in tailoring our Full Self-Driving technology to China’s specific needs,” said a Bloomberg commentator. This partnership is not just about leveraging Baidu’s capabilities but is a robust response to the geopolitical and technological challenges foreign companies face in China.

Musk’s Vision for Electric Vehicles

During his visit, Musk expressed optimism about the future of electric vehicles. “It’s good to see electric vehicles making progress. All cars will be electric in the future,” he remarked, underscoring his commitment to leading the global transition towards sustainable transportation. His visit also included discussions with high-level Chinese officials, indicating the importance of Tesla’s business in China not just for sales but as a critical component of its global supply chain and manufacturing capabilities.

Regulatory Hurdles and Technological Integration

The primary goal of Musk’s visit was to navigate the regulatory landscape to facilitate the approval of Tesla’s Full Self-Driving system in China. China’s regulatory environment is notoriously stringent, with specific national security and data privacy concerns. Tesla’s engagement at this high level suggests a proactive approach to compliance and collaboration.

The partnership with Baidu is a critical element in overcoming these obstacles. By aligning with a respected and well-connected local entity, Tesla aims to gain regulatory favor and a strategic ally in its long-term goals. “This partnership will allow us to combine our advanced technologies with Baidu’s capabilities in artificial intelligence and autonomous driving, setting a new standard for autonomous vehicles in China,” added the Tesla spokesperson.

Looking Forward

The implications of this partnership extend beyond the immediate technological and regulatory milestones. For Tesla, this is about setting a precedent for how it can operate in restrictive environments globally. China serves as a test bed for adapting Tesla’s business model and technological prowess to fit local markets, which could serve as a blueprint for expansions into other regions.

As Tesla moves forward with its plans in China, the automotive and tech industries watch keenly. This collaboration between Tesla and Baidu signifies a melding of technological strengths and illustrates how strategic partnerships can help advanced technologies find a place in global markets under complex regulatory frameworks.

In the broader context of Tesla’s global strategy, the success of its Full Self-Driving technology in China could catalyze further international expansions, possibly influencing future collaborations with other tech giants and governments. As Musk aptly puts it, the future is electric, and with Tesla’s latest moves, it also seems increasingly interconnected.

The US has been working to restrict tech—especially networking tech—from Chinese firms over concerns about national security. Those efforts have seen the likes of Huawei, ZTE, and others banned from US networks. According to The Wall Street Journal, China is retaliating by giving its own telecom companies a 2027 deadline to phase out and remove chips from AMD and Intel.

China has been pouring billions into its semiconductor industry in an effort to make it competitive with US companies, as well as Taiwan and South Korea. Beijing’s efforts have been hampered by other countries joining the US in restricting its access to advanced chip tech. China has pushed back, trying to pressure the Netherlands to grant it access to ASML’s extreme ultraviolet lithography (EUV) machines.

So far, China’s efforts appear to be having mixed results. Early reports indicated the country’s semiconductor industry was on the verge of collapse as a result of the sanctions. Despite the setbacks, Huawei surprised the industry and US officials when it released the Mate 60 Pro with a 7nm chip made by Chinese firm SMIC. Despite being caught offguard, Commerce Secretary Gina Raimondo voiced her belief that China still lacked the ability to produce such chips at scale.

“I was obviously upset when I saw the [Huawei announcement for the Mate 60],” Raimondo said. “The only good news I can offer is that we have no evidence they can produce 7 nanometers at scale.”

Beijing’s deadline to phase out AMD and Intel from network equipment would seem to indicate that Chinese officials believe they are close to being able to end their dependence on foreign chips.

The move is sure to hit AMD and Intel hard, as WSJ points out, since the two companies provide the bulk of the chips used in China’s networking equipment. The news also comes at a time when Intel is looking to revitalize its foundry business and is trying to gain customers around the world.

The US House voted 352-65 to ban TikTok or force parent company ByteDance to sell it. A number of high-profile executives have expressed interest in buying the platform, most notably Kevin O’Leary and Bobby Kotick.

While some have expressed concern over the precedent a TikTok ban raises, experts are praising the move as one that was needed and long overdue.

“This action may be justified and long overdue, but TikTok is just the tip of a very big iceberg that a single bill can’t sink,” said Chris Olson, President at The Media Trust, in a statement to WPN. “Foreign actors are constantly targeting young Internet users and other vulnerable groups through websites, apps, social media and entertainment platforms with total impunity.

“Few in Washington realize that our digital borders are completely open, allowing anyone to spy on Americans, spread misinformation and manipulate the youth with addictive algorithms as they please. Making a meaningful difference will require far more comprehensive initiatives, both from government officials and industry leaders.”

Similarly, experts say the ban is an important part of addressing cybersecurity concerns, but more is needed.

“TikTok, owned by ByteDance, presents significant cybersecurity concerns for the United States, primarily due to the potential exploitation of its vast user base and the Chinese company’s access to user data,” Lisa Plaggemier, Executive Director of The National Cybersecurity Alliance, said in a statement. “Beyond the immediate privacy implications, there are fears that TikTok could be leveraged as a tool for misinformation campaigns and data collection by foreign actors, particularly the Chinese government. The scale of TikTok’s user engagement, combined with China’s track record of aggressive cyber activities, raises the specter of sophisticated cyber threats targeting American users, including surveillance, data breaches, and manipulation of online discourse.

“Moreover, TikTok’s popularity among both adults and children amplifies the potential impact of these cyber threats, as sensitive personal information could be compromised, and disinformation campaigns could spread rapidly. The platform’s interactive nature and extensive reach make it an attractive target for malicious actors seeking to undermine national security or advance foreign interests. As such, policymakers face the critical task of balancing the benefits of information sharing and social connectivity with the imperative to protect citizens from cyber vulnerabilities inherent in platforms like TikTok. Continued investment in cybersecurity infrastructure and regulations is essential to mitigate these risks and uphold the integrity of digital ecosystems in an increasingly interconnected world.”

Experts warn that other platforms will need to continue to fight misinformation, especially with TikTok shut down as a channel for such activity.

“A ban on the platform could disrupt the dissemination of false or misleading information to its vast user base, potentially mitigating the harmful effects of viral misinformation campaigns,” James Mawhinney, CEO of Media.com, explained in a statement. “However, it’s crucial to recognize that the issues of disinformation and online manipulation are not confined to TikTok alone. Other platforms, including Facebook, Twitter, and YouTube, have grappled with similar challenges, highlighting the need for comprehensive approaches to combating misinformation across the digital landscape.

“Furthermore, a nation-wide ban on TikTok could have ripple effects across the broader social media ecosystem. With TikTok’s absence, users may flock to alternative platforms in search of similar content experiences, potentially amplifying the user base of competing apps. This influx of users could reshape the dynamics of the social media landscape, influencing trends in content creation, user engagement, and platform competition. Additionally, the ban could prompt other social media companies to reevaluate their own data security practices and ties to foreign entities, as scrutiny over tech regulation intensifies.”

One thing is clear: A TikTok ban represents uncharted waters, and will have repercussions that will ripple out for some time.

According to The Wall Street Journal, Kotick has discussed the possibility of purchasing TikTok with potential partners. He reportedly discussed the deal with OpenAI CEO Sam Altman among others, opening the door to OpenAI using data from TikTok for AI training. 

TikTok has been in US crosshairs for years. The company has had repeated privacy scandals, and its parent company’s strong ties with Beijing have raised ongoing national security concerns. Those concerns have seemingly been validated by the company’s actions, such as using TikTok to surveil Forbes journalists. 

Most recently, the House Energy and Commerce Committee unanimously voted to advance a bill that could lead to a ban on the social media app, according to CNN. TikTok’s efforts to enlist its users in opposition to the bill backfired, leading lawmakers to double-down on their concerns.

Kevin O’Leary has also emerged as a potential buyer, and may be seen as a better option. Kotick’s tenure at Activision included accusations that he turned a blind eye to discrimination and sexual harassment.

The US and its allies have been trying to strangle China’s chip-making industry, cutting off access to advanced technology, especially that which can be used to power AI models. Chinese scientists have been working to circumvent US bans, but China’s tech industry was reportedly on the verge of collapse in late 2022. Despite the challenges it has faced, China has managed to surprise the world, debuting a 7nm chip that critics thought it was incapable of producing.

According to Bloomberg, China’s National Integrated Circuit Industry Investment Fund is in the process of raising the country’s biggest chip fund yet, a whopping $27 billion. The money will be used to help fund advanced semiconductor design and manufacturing and help the country become independent from US tech.

Farfetch plans to use their IPO windfall to dramatically improve their technology which they see as the best way to improve the consumer experience.

Farfetch Founder and CEO José Manuel Ferreira Neves recently discussed Farfetch and the online luxury brand industry on Bloomberg:

Online Luxury is Growing 25 Percent a Year

It’s a very unique opportunity. You have this amazing global industry. It’s $300 billion, the personal luxury goods industry and only 9 percent is online. There are two opportunities here really. One is the growth of online luxury which is going to grow to 25 percent a year for the next seven years. This is a $100 billion opportunity shift in online luxury.

The big question is how is technology going to help brands and retailers really improve the consumer experience in the physical store. This is something at Farfetch that we are very passionate about.

China is an Incredible Opportunity for Online Luxury

China is a very exciting opportunity. Chinese citizens are at the onset of the luxury industry, whether they shop at home or when they’re shopping abroad. Online penetration is very low in China so this means that there is an incredible growth runway for Farfetch in the territory.

That led to our partnership with JD.com where we have our own team. We have the Farfetch China app and website, we have local customer service, local payment systems, and local marketing. It’s a truly localized service. That is what’s driving incredible growth to the Farfetch brand in that region.

José Neves, founder and CEO of @farfetch, told us about the company’s grand ambitions for China at the WWD’s Men’s Wear Summit this week. https://t.co/MrMj7y5VCG

— Jing Daily | 精日传媒 (@JingDaily) March 29, 2018

WeChat is an amazing app with over 900 million users. It is the Instagram, plus WeChat, plus PayPal, etc. of China in one app. That is very powerful and very interesting. Now with our acquisition CuriosityChina we are powering the retail presence of 80 luxury brands. We think that is very interesting for the industry and we think that is probably something that we will see for the western world.

How Farfetch plans to capture the growth in online luxury e-commerce https://t.co/t9HI0igMFV pic.twitter.com/RjvAel79li

— Bloomberg TV (@BloombergTV) September 21, 2018

Brands Now Using Social and Digital Marketing Extensively

I think brands move cautiously and they choose their marketing channels very carefully. As these newer channels have developed the brands have adapted to them and their now using social media and digital media extensively to create desire, to drive discovery of new products obviously transactions as well.

It’s a gradual pace but it’s really exciting that were at that inflection point where the brands see this as a tremendous opportunity.