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Yahoo
24 minutes ago
- Yahoo
China Summons Nvidia Over H20 Chip Security Days After US Talks
(Bloomberg) -- Chinese authorities summoned Nvidia Corp. to discuss alleged security risks related to its H20 chips, casting doubt over the domestic business of the world's most valuable company weeks after co-founder Jensen Huang met senior officials in Beijing. The World's Data Center Capital Has Residents Surrounded An Abandoned Art-Deco Landmark in Buffalo Awaits Revival Budapest's Most Historic Site Gets a Controversial Rebuild San Francisco in Talks With Vanderbilt for Downtown Campus We Should All Be Biking Along the Beach The Cyberspace Administration of China called company representatives into a meeting to discuss what it deemed serious security vulnerabilities with the artificial intelligence chip. In a statement, the internet watchdog cited comments by US lawmakers about the need to install tracking capabilities into advanced chips sold to other countries. The agency asked staff to explain potential risks and provide documents as needed, the CAC said without elaborating. The revelation came just days after US and Chinese officials met in Stockholm to extend their tariff truce, talks Chinese state media said had 'deepened mutual trust.' Huang himself recently concluded a high-profile visit to Beijing, where he feted national Chinese champions such as DeepSeek and celebrated the country's rising prowess in AI. The billionaire had denied Nvidia installed backdoors in its product, saying that wouldn't make business sense. The Trump administration had only recently pledged to drop export restrictions on the H20 to China, reversing its earlier stance on the AI chip. On Thursday, shares in chipmakers including Semiconductor Manufacturing International Corp. and Cambricon Technologies Corp. rose more than 5% after the CAC's notice. Nvidia didn't respond to a request for comment outside of regular business hours. Its stock rose 2.5% on Germany's Tradegate, boosted in part by positive earnings from Meta Platforms Inc. and Microsoft Corp. 'The CAC's scrutiny over H20 security risks could further erode Nvidia's Chinese market share amid rising domestic competition, and immediate H20 sales resumption may face delays due to regulatory uncertainty,' Forrester's Principal Analyst Charlie Dai said. 'It also aligns with China's broader push to accelerate domestic semiconductor alternatives for technological self-reliance amid US export controls. In addition, the timing amplifies China's leverage in ongoing US trade talks.' Washington in recent weeks had lifted a spate of export controls — including on chip design software, imposed ahead of last month's trade talks in London. That's in return for China allowing more sales of rare-earth minerals needed to make a range of high-tech products, something US negotiators thought they'd achieved during prior talks in Geneva. Commerce Secretary Howard Lutnick had touted the resumption of sales of the H20 as a breakthrough that came from discussions in London, framing it as a concession to Beijing. Thursday's revelation however may send a signal that China doesn't view the H20 — a less-advanced chip originally designed to comply with US sanctions — as a valuable offering. Chinese agencies have previously singled out major American companies for scrutiny. In the past, they've announced probes into acquisitions by US firms — including Nvidia — an arena in which regulators wield approval powers. In October, an arm of the CAC warned of potential security flaws and high failure rates in Intel Corp. processors. The government in 2023 barred Micron's chips from critical infrastructure over cybersecurity concerns, though the US company has since moved to repair ties. Both companies have stressed their commitment to product security. 'US lawmakers have previously called for advanced chips exported from the US to be equipped with location-tracking features,' the CAC said in its latest statement. 'The location-tracking and remote shutdown capabilities on Nvidia computing chips are ready, according to US AI experts.' Nvidia and Advanced Micro Devices Inc. said this month they would resume sales of some AI chips in China after securing Washington's assurances that such shipments would get approved. Such export license approvals could generate billions of dollars in total revenue for the companies this year. However, US lawmakers slammed risks it would boost Beijing's military capabilities and expand its ability to compete with the US in AI. Companies like Huawei Technologies Co. now spearhead a nationwide effort to develop homegrown technologies to reduce China's reliance on American hardware and circuitry, and catch the US in potentially game-changing technologies. Huawei's Ascend chips have evolved into the closest equivalent to Nvidia's accelerators within China. Its 910C is considered competitive with the H20 particularly for inference, or hosting AI services. During his trip to China this month, Huang took almost every opportunity to celebrate China's technological ambitions, name-checking prominent local firms from Alibaba Group Holding Ltd. to Deepseek and Tencent Holdings Ltd. 'I have no information to offer on this,' Ministry of Commerce spokesman He Yadong said during a regular briefing Thursday, when asked whether the move by CAC could impact trade negotiations. --With assistance from Jenni Marsh, Colum Murphy and Jing Li. Russia Builds a New Web Around Kremlin's Handpicked Super App Burning Man Is Burning Through Cash It's Not Just Tokyo and Kyoto: Tourists Descend on Rural Japan Everyone Loves to Hate Wind Power. Scotland Found a Way to Make It Pay Off Cage-Free Eggs Are Booming in the US, Despite Cost and Trump's Efforts ©2025 Bloomberg L.P. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
41 minutes ago
- Yahoo
US Sets Korea Tariff Rate at 15% in Deal With Key Supplier
(Bloomberg) -- The US reached a trade agreement with South Korea that will impose a 15% tariff on imports, including autos, and sets up major investment in American energy and shipbuilding. The World's Data Center Capital Has Residents Surrounded An Abandoned Art-Deco Landmark in Buffalo Awaits Revival Budapest's Most Historic Site Gets a Controversial Rebuild San Francisco in Talks With Vanderbilt for Downtown Campus We Should All Be Biking Along the Beach The agreement, announced by President Donald Trump and confirmed by officials in Seoul, brings one of the world's biggest exporters into the US's emerging trade framework and spares a major supplier of cars, smartphones and machinery from a 25% rate just a day before the deadline. The agreement includes a $350 billion South Korean fund for US investments. The won weakened against the dollar after a bounce at the open and shares in Seoul erased early gains. 'We have agreed to a Tariff for South Korea of 15%,' Trump said in a post to his social media platform on Wednesday. 'America will not be charged a Tariff.' The deal is similar to the one the US reached with South Korea's regional rival, Japan, which included a $550 billion investment pledge. In both cases, investments in the US would be directed by Trump himself, the president said. And for both funds, 90% of the profits would flow back to the US, Commerce Secretary Howard Lutnick said in a post on X. Still, details remain unclear and in Japan's case the two sides offered different interpretations. South Korea, one of the closest US military allies, has been racing to reach a deal after Asian countries from Japan to Indonesia sealed their own agreements. President Lee Jae Myung's two-month-old government had to scramble to make up ground after being slowed out of the gate by internal political turmoil. 'It is a case of the the worst avoided, with a pinch of relief removing Korea-specific tariff risks,' Kathleen Oh, Chief Korea Economist at Morgan Stanley, wrote in a note. 'It puts Korea on level ground with its export competitors in the US, especially for autos.' Officials in Seoul confirmed the agreement and said it includes the same 15% discounted tariffs on automobiles — a key point of tension in recent negotiations between the countries. The deal also avoided opening the South Korean market further to US beef and rice exports, senior presidential secretary Kim Yong-beom said in briefing in Seoul Thursday — though Trump in his post indicated that agriculture is part of the agreement, without elaborating. Market access for farm products has been a hot-button political issue that sparked widespread protests in 2008 and threatened to undermine the new government's popularity with a key voter group. South Korea's stock benchmark Kospi was down 0.3% after erasing some early gains, while the won gained traded 0.3% weaker after gaining as much as 0.4% at the open. Shares of Hanwha Ocean Co. soared as much as 16% on the back of the shipbuilding partnership, while Kia Corp. and Hyundai Motor Co. shares dropped as much as 6.3% and 4.3%, respectively, after Kim said that the US side rejected a South Korean push for a 12.5% tariff on cars. 'The deal is in line with expectations and has been priced in by markets,' said Peter Kim, managing director at KB Securities Co. in Seoul. 'Perhaps investors are even disappointed that we could not get a better deal than Japan. Since the market has done well already year-to-date, it's consolidating for now.' But the deal leaves major areas of uncertainty for South Korea. Tariff risk remains for some of the country's key exports, including computer chips, batteries and pharmaceuticals. The won has been unsettled by reports that the US demanded appreciation of the currency, a topic that may feature in talks between Finance Minister Koo Yun-cheol and US Treasury Secretary Scott Bessent on Thursday. There's also the issue of US troops stationed in South Korea and Trump's long-running campaign to push allies to increase their financial contributions to hosting American military personnel. The agreement 'will bring immediate relief to South Korea's exporters and financial markets,' Hyosung Kwon and Adam Farrar of Bloomberg Economics wrote. 'It also raises concerns about longer-term economic and strategic risks.' On the won, Korea's finance ministry said that there was no direct discussion of the currency during trade negotiations, but related matters are being discussed separately between the two countries' authorities. Exports were equivalent to more than 40% of South Korea's gross domestic product last year, and the country holds one of the world's largest trade surpluses with the US. As a major supplier to key global industries, disruptions to the country's economy risked causing ripple effects across global supply chains. Cars, Energy Cars being included in the deal is a major win for South Korea as autos account for more than a quarter of the country's exports to the US. Hyundai Motor Group, whose Executive Chair Chung Euisun joined the Korean team for the final stretch of talks in Washington, faced risk in particular due to its dependence on domestic production compared with rivals. Trump also said South Korea had agreed to 'accept American product including Cars and Trucks, Agriculture, etc.' That is likely to take the form of an agreement by Seoul to accept cars and trucks built to US motor vehicle safety standards, without subjecting them to additional requirements. Although automobiles and auto parts would be given the lower 15% rate, US Trade Representative Jamieson Greer told Bloomberg News that steel and aluminum would not be subject to a similar discount under the Korea trade deal. South Korea will purchase $100 billion in liquefied natural gas or other energy products over the next three and a half years, Lutnick said. The US exported about 88 million tons of LNG last year, according to the International Gas Union, which is worth about $50 billion at current Asian spot prices. The pledge comes on top of a European Union promise to buy $750 billion of American energy over three years — and amid increasing questions about how the US can fulfill the volumes being established in the country's trade frameworks with other nations. Beef, Rice Trump has emphasized investments in the US and purchase commitments — especially those tied to the nation's oil and gas bounty — in reaching framework trade agreements. The 15% tariff rate for South Korea is the culmination of months of talks and helps Seoul — the US's sixth-biggest trading partner — avert a 25% levy that was set to take effect Aug. 1, alongside fresh penalties for dozens of US trading partners. The negotiations were especially delicate for the young government in South Korea, as President Lee considered allowing the US greater access to South Korea's beef and rice markets — a politically sensitive topic that spurred widespread protests back in 2008. 'The president placed particular emphasis on preventing any further opening of our agricultural and livestock markets, fully taking into account their political sensitivity and historical context,' Kim told reporters. Lee hailed the deal as removing uncertainty for exporters and helping Korea compete with major economies on equal or superior terms. The $350 billion fund will help Korean companies enter the US market, with $150 billion dedicated to the shipbuilding industry, he indicated. Seoul this week pitched a partnership in shipbuilding as a key proposal to clinch an agreement. 'We've overcome a major hurdle,' Lee wrote on Facebook. 'This agreement is the result of the convergence of the US interest in rebuilding its manufacturing industry and our commitment to enhancing the competitiveness of Korean companies in the US market.' Trump said the South Korean president would be visiting Washington within the next two weeks for a bilateral meeting. Sensitive topics such as high-precision mapping data and agricultural goods were among the first areas of discussion between Korean Trade Minister Yeo Han-Koo and Greer. But as talks accelerated in recent weeks, Korean maintained a firm stance and succeeded in shielding those sectors from additional concessions, Kim said, stressing that no further market openings will be granted in these areas. The clarity on trade allows South Korean policymakers to shift their focus to reviving the economy, which has been weighed down by sluggish consumption. GDP returned to growth last quarter after a modest contraction in the previous period. Concessions by Lee carried risk of torpedoing his honeymoon period in office by angering farmers and fracturing his party. His victory in June's election after months of political turmoil prompted an uptick in sentiment among businesses and consumers and a surge in stocks to record levels. South Korea already has a free trade agreement with the US and its corporate giants pledged tens of billions of dollars of investments as the trade talks were ongoing. In the final weeks ahead of the US-imposed Aug. 1 deadline, several Asian nations had been racing to lock in better terms. Korea was able to match the Japan deal at the new baseline of 15%. Indonesia and the Philippines each secured a 19% rate, while Vietnam's stands at 20%. India, meanwhile, was unable to reach a deal as yet and the US will impose a tariff of at least 25% on its exports. Talks with China, the world's biggest exporter, continue, with a trade truce in force until Aug. 12. --With assistance from Seyoon Kim, Josh Wingrove, Hyonhee Shin, Jaehyun Eom, John Cheng and Sangmi Cha. (Updates with markets, comments throughout) Russia Builds a New Web Around Kremlin's Handpicked Super App Burning Man Is Burning Through Cash It's Not Just Tokyo and Kyoto: Tourists Descend on Rural Japan Everyone Loves to Hate Wind Power. Scotland Found a Way to Make It Pay Off Cage-Free Eggs Are Booming in the US, Despite Cost and Trump's Efforts ©2025 Bloomberg L.P. Sign in to access your portfolio
Bloomberg
an hour ago
- Bloomberg
Trump Blasts India Over Russia Ties, Pushing Modi Into a Corner
As the workday wound down in New Delhi on Wednesday, most Indian trade officials were getting ready to head home. Then their phones lit up: Donald Trump hit the nation with a 25% tariff. To many officials who had been working for months on a US-India trade deal, Trump's announcement came as a shock. Several learned the news from only when journalists called them up. They soon huddled to draft a statement, making clear that India still wanted to reach a mutually beneficial deal.
