Overview
- China has launched an antitrust investigation into Nvidia and imposed sanctions on 13 U.S. defense firms in response to U.S. trade restrictions.
- Beijing has banned exports of critical minerals like gallium and germanium, essential for semiconductors and military equipment, signaling its leverage over global supply chains.
- China's actions also include urging companies to avoid U.S. computer chips and scrutinizing American businesses, raising concerns among foreign investors operating in the country.
- Trump has proposed a 10% tariff on all Chinese imports, with additional measures aimed at addressing trade imbalances and pressuring Beijing on issues like fentanyl production.
- Economic experts warn that escalating retaliations could harm both economies, with China's slowing growth and dependence on exports making it particularly vulnerable.