US, China Pivot From Decoupling to Leverage Battle — SkimNews
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- Alibaba, ByteDance and Tencent accessed compute power from Nvidia's GB300 chips remotely through data centers in Thailand, Malaysia and Japan, and a White House official accused Moonshot AI of using one of Nvidia's most advanced processors within days of releasing a new model.
- Trump authorized resumption of Nvidia H200 chip sales to "approved customers" in China while continuing to embargo cutting-edge Blackwell chips, a calculated gambit to influence China's AI ecosystem and strengthen US bargaining position in broader trade talks.
- The 2026 Stanford AI Index found the performance gap between leading US and Chinese AI models has narrowed, with China leading in AI publication volume, citations, patent output and industrial robot installations — evidence Beijing is building indigenous capability despite US curbs.
- The US hosts an estimated 5,427 data centers, more than 10 times any other country, yet depends on Taiwan Semiconductor Manufacturing Company for almost every leading chip, exposing single-foundry reliance as a structural vulnerability in Washington's AI ambitions.
- A White House report titled "The Great Transshipment Scam," released in August, accused Chinese exporters of routing goods through more than 40 countries to evade US tariffs while acknowledging some shift stems from "legitimate changes" in production and sourcing.
- China's exports of electronics, computers and circuit-board assemblies to neighboring Asian countries have grown, with much of this production tied to the US AI boom, allowing Chinese manufacturers to benefit indirectly from Washington's investments even as bilateral trade has shrunk.
- The Trump administration has shifted from outright decoupling toward selective economic engagement, seeking Chinese commitments on critical minerals supply chains, Boeing aircraft purchases and restored market access for US farm produce ahead of a Xi-Trump summit in Washington later this month.
Why it matters: Washington's leverage rests on controlling advanced chip access and tariff pressure, yet Chinese firms are routing around those curbs via third-country data centers. Trump is wagering that selling older H200 chips while hoarding Blackwell — plus tariff threats — can extract concessions on critical minerals, Boeing and farm access, with a Xi-Trump summit later this month as the proving ground.
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