US and EU intensify trade/tech rivalry with China
Key Questions
What new US tariffs are being proposed on China and other economies?
The USTR is proposing Section 301 tariffs targeting 60 economies over forced labor and unfair trade practices. This comes despite a recent court setback and aims to rebuild tariff walls against China.
How is the EU responding to dependence on Chinese batteries and tech?
The EU is pushing supplier diversification through a new battery strategy to reduce €27B reliance on China. It is also struggling to police tariff circumvention by Chinese firms.
What actions has China taken to counter US and EU export controls?
China has introduced a controlled tech list, outbound investment rules, and expanded export controls to materials like indium phosphide and rare earths. It has also retaliated with tariffs on US farm exports totaling $14.9B annualized.
Which Chinese companies were added to the Pentagon's military company list?
The Pentagon added Alibaba, BYD, Baidu, and Unitree to its list of Chinese military companies. China expressed strong dissatisfaction with the move.
What is the status of China's rare earth export restrictions?
China stands by its rare earth export restrictions, causing yttrium prices to surge 4,400%. Japan's tungsten imports from China have dropped to zero as a result.
How are US export controls affecting AI chip access for Chinese firms?
The US has expanded AI chip export controls to cover Chinese subsidiaries abroad. Some loopholes like the H800 have provided temporary relief, but new measures continue to tighten access.
What recent incidents involve US citizens or influence operations linked to China?
China detained US citizen Min Zin on espionage charges. Reports also indicate China used ChatGPT for anti-Trump propaganda influence operations.
Why is there congressional resistance to a potential US-China trade thaw?
Congress is resisting any thaw due to ongoing concerns over tariffs, forced labor, and tech rivalry. US business groups warn that critical minerals are nearly impossible to replace.
USTR targets 60 economies with forced labor tariffs. US expands semiconductor export bans; Commerce admits enforcement failure. EU pushes supplier diversification—new EU battery strategy targets €27B China dependence. China counters with controlled tech list, outbound investment rules, and resource weaponization. Pentagon adds Alibaba, BYD, Baidu, Unitree, NIO, Trina Solar, JA Solar to military company list—major escalation beyond traditional defense firms. China expresses strong dissatisfaction and threatens resolute retaliation. Japan's tungsten imports from China drop to zero; Japan moves billions to India. China stands by rare earth export restrictions; yttrium prices up 4,400%. China's rare earth truce expires November 10. China expands export controls to indium phosphide, now jolting US-Taiwan optics supply chain. Taiwan mulls AI chip export curbs on all Chinese firms. China's retaliatory tariffs on US farm exports hit $14.9B annualized. EU struggles to police China's tariff circumvention. Trump's China thaw faces congressional resistance. US business group warns critical minerals 'nearly impossible to replace'. US pressures NATO to remove Huawei equipment; European backlash and ASML push back. New export control measures from UK, EU, and China add to fragmentation. China and Russia vetoed US/UK UNSC resolution on Iran sanctions snapback. China's CIPS system gains traction. China used fake consulting firms to target US security-clearance holders. Taiwan divided over US push to curb trade/investment with China. Solomon Islands says China security pact to remain secret. New: China used ChatGPT for anti-Trump propaganda influence ops. New: EU-China trade war seen as inevitable with tariffs on EVs and steel already in place. New: China warns EU over proposed sanctions on 14 Chinese/HK firms for Russia support. New: China joins Macron-led video call in rare economic talks. New: Tech clampdown reported. New: Rare earths dynamics with India angle. New this run: China cancels high-level EU meetings over new supply chain security rules (orders 834/835), escalating diplomatic freeze. China's MFA expresses concern over use of force in global conflicts. New from articles: USTR rebuts WaPo editorial, doubling down on tariffs. Honda warns US tariffs and Chinese EVs threaten Canada's auto industry. US senators urge tighter rules for contract chipmakers. China tightens export declaration criteria for machine tools and drones. China's State Council issues landmark outbound investment rules. Rare earth price war begins. New from articles just read: China's InP export controls jolt US-Taiwan optics chain. USCBC survey calls for recalibration of export controls and tariffs. New from this run's articles: Dems introduce bill to ban Chinese EVs at US border. China bans four NZ MPs from entry. US AI firms block Chinese investors while China retaliates with export controls. Nvidia pitches Vera CPU as side door back into China. EU tariffs on Chinese tires reshape South Korea's tire market. US farmers cautiously optimistic on China trade despite soybean export plunge. China's MSS warns of 'spy turtles' for underwater espionage. New from articles just read this run: US Senator Slotkin introduces bill to ban Chinese vehicles and connected parts over data security. US expands AI chip export controls to cover Chinese subsidiaries abroad. Japan's chip exports to China surged 48% in 2025, challenging decoupling narrative. Tungsten hexafluoride (WF₆) prices rise due to China's export restrictions—critical semiconductor gas squeeze. EU tech sovereignty may be 'illusion' as China and US dominate. Contrarian view: US export controls accelerate China's chip self-sufficiency. New from this run's articles (just read): China detains US citizen Min Zin on espionage charges—new flashpoint. US senators push new export controls on chips. SpaceX blocks Chinese investors from IPO. UN Security Council procedural loophole overrides China-Russia veto on Iran sanctions—major diplomatic setback for Beijing. New from this batch: Pentagon list expanded to include NIO, Trina Solar, JA Solar; China threatens retaliation. USTR Section 301 tariffs on 60 economies over forced labor reaffirmed.