Huawei and other Chinese chip firms are catching up fast
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Economist
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Cash-trapped (part 2): drowning in debt
China may be a nation of savers, but it is becoming a nation of spenders, too. In the past decade many middle-class Chinese have grown accustomed to borrowing money for everything from property to basic expenses. As a result, household debt is soaring and millions of people are defaulting on their loans. In the second episode of a two-part series, we're asking Chinese families, young professionals and business owners about their money troubles. This week, Jiehao Chen, The Economist 's China researcher, and James Miles, our China writer-at-large, explore why so many Chinese people are struggling with their repayments.
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China cautions tech firms over Nvidia H20 AI chip purchases, sources say
Aug 12 (Reuters) - Chinese authorities have summoned domestic companies including major internet firms Tencent ( opens new tab and ByteDance over their purchases of Nvidia's (NVDA.O), opens new tab H20 chips, asking them to explain their reasons and expressed concerns over information risks, three people familiar with the matter told Reuters. The Cyberspace Administration of China (CAC) and other agencies also held meetings with Baidu ( opens new tab and smaller Chinese tech firms in recent weeks, said one of the two people and a third source. The Chinese officials asked companies why they needed to buy Nvidia chips when they could purchase from domestic suppliers, the sources. Authorities also expressed concerns that materials Nvidia has asked companies to submit for U.S. government review could contain sensitive information including client data, one of the sources said. However, the people, who declined to be identified because the meetings were not public, said the companies have not been ordered to stop buying H20 chips. Nvidia said on Tuesday the H20 chip was "not a military product or for government infrastructure". "China has ample supply of domestic chips to meet its needs. It won't and never has relied on American chips for government operations, just like the U.S. government would not rely on chips from China," the statement said. Baidu, ByteDance, Tencent and the CAC did not immediately respond to requests for comment. Earlier on Tuesday, Bloomberg News reported that Chinese authorities have urged domestic companies to avoid using Nvidia's H20 chips, particularly for government-related purposes. Several companies were issued official notices discouraging the use of the H20, a less-advanced chip, mainly for any government or national security-related work by state enterprises or private companies, the report said, citing people familiar with the matter. In a separate report, The Information reported that ByteDance, Alibaba and Tencent had been ordered by the CAC in the past two weeks to suspend Nvidia chip purchases altogether, citing data security concerns. The CAC directive was communicated at a meeting the regulator held with over a dozen Chinese tech firms, shortly after the Trump administration reversed the export curbs on H20 chips, according to the Information report. Reuters could not immediately confirm the reports and Alibaba did not respond to a request for comment. Top contract chipmaker SMIC ( opens new tab rose 5% on Tuesday on expectations of rising demand for locally-produced chips. But even without an outright ban, the concerns expressed by Chinese authorities could threaten Nvidia's recently restored access to the Chinese market as Chinese companies look to keep in step with regulators. Nvidia designed the H20 specifically for China after U.S. export restrictions on its more advanced AI chips took effect in late 2023. The H20 had since been the most sophisticated AI chip Nvidia was allowed to sell in China. Earlier this year, U.S. authorities effectively banned its sale to China, but reversed the decision in July following an agreement between Nvidia and the Trump administration. Last month, China's cyberspace regulator summoned Nvidia representatives, asking the company to explain whether the H20 posed backdoor security risks that could affect Chinese user data and privacy. State-controlled media have intensified criticism of Nvidia in recent days. Yuyuan Tantian, affiliated with state broadcaster CCTV, published an article on WeChat over the weekend claiming H20 chips pose security risks and lack technological advancement and environmental friendliness. The scrutiny threatens a significant revenue stream for Nvidia, which generated $17 billion from China sales in its fiscal year ended January 26 - or 13% of total revenue. China has accelerated work on domestic AI chip alternatives, with companies, such as Huawei ( developing processors that rival the H20's performance, and Beijing urging the technology sector to become more self-sufficient. However, U.S. sanctions on advanced chipmaking equipment, including lithography machines essential for chip production, have constrained domestic manufacturers' ability to boost production. On Monday, U.S. President Donald Trump suggested that he might allow Nvidia to sell a scaled-down version of its advanced Blackwell chip in China, despite deep-seated fears in Washington that Beijing could harness U.S. AI capabilities to supercharge its military. China's foreign ministry said on Tuesday it hoped the U.S. would act to maintain the stability and smooth operation of the global chip supply chain. The Trump administration last week confirmed an unprecedented deal with Nvidia and AMD (AMD.O), opens new tab, which agreed to give the U.S. government 15% of revenue from sales of some advanced chips in China. China's renewed guidance on avoiding chips also affects AI accelerators from AMD, Bloomberg also reported. It was not clear, however, whether any notices from Chinese authorities specifically mentioned AMD's MI308 chip. AMD did not respond to a request for comment outside regular business hours.
STV News
an hour ago
- STV News
Martindale: I was pondering Livingston future before new owner rejuvenated me
Livingston manager David Martindale has revealed he was thinking about potentially leaving the club before new owner Calvin Ford came in and 'gave everyone a lift'. The American investor completed his takeover of the club in May, just before Martindale guided the team back to the play-offs with a play-off triumph over Ross County. The club have enjoyed their return to the Premiership after a year's absence, with four points from their opening two games. Ford has been an enthusiastic backer since making his move to take over, and Martindale welcomes his energy. The manager said it's down to the team 'to make sure we keep him as enthusiastic as possible' but revealed that the American's arrival had helped him stay at the club at a time when he was contemplating moving on. 'He's brilliant,' Martindale said. 'I'll be honest, When we were sitting on Zoom calls back in February or March or whenever it was, it was probably in my head that I needed to try and take the club back to the Premiership and then maybe look elsewhere for my career. 'Calvin just came in and kind of rejuvenated me also, and rejuvenated the staff. It just gave everyone in the football club a massive lift because the previous years were difficult. 'Taking the club back to the Premiership with the old regime, it wouldn't have been ideal. It would have just been pushing water up a hill again. Martindale feels there has been a lift since the American's arrival with his 'passion and desire' that can be seen all through the club and also shared some words of backing he had ahead of the crucial play-off tie at the end of last season. 'Don't get me wrong, it never took a lot to light our fires again, if that makes sense,' he said. 'It never took a lot for that to happen. 'Calvin came into the building and just rejuvenated all of us and I think we needed that. 'The timing was impeccable in terms of him coming in before we got back to the Premiership. 'I remember his words to me. I remember sitting in the hotel room at Ross County and a text message comes that says 'Look Davie, don't think you have to take the club back to the Premiership. It would be great, but I'm here for the good and the bad times and I'll be here if you are in the Championship'. 'And maybe that helped me in the dugout, helped me make better decisions. 'He's just been a breath of fresh air, to be honest.' Get all the latest news from around the country Follow STV News Scan the QR code on your mobile device for all the latest news from around the country
