During his first White House meeting with Nvidia CEO Jensen Huang, President Trump signaled potential shifts in U.S. AI and semiconductor policy amid intensifying global competition. Discussions tackled export controls, DeepSeek breakthroughs, and challenges in global supply chains.
This week saw AI rivalry intensify and major tech earnings shake up the market. DeepSeek’s breakthrough rattled U.S. tech giants, while Microsoft and Meta’s results underscored the rewards—and risks—of AI investments. Here’s what’s driving Wall Street’s latest moves.
The U.S. and China are battling for AI dominance as Stargate’s $500B initiative drives U.S. investment, while China’s DeepSeek disrupts with cost-efficient AI, surpassing ChatGPT on Apple’s App Store. A “large-scale malicious attack” hit DeepSeek, highlighting fierce competition and security risks.
Biden and Xi Jinping Finalise AI and Nuclear Safety Accord at APEC
At APEC, Biden and Xi agreed AI won't control nuclear weapons, stressing human oversight. They addressed detained Americans, North Korea, and trade, marking a key step in U.S.-China diplomacy amid global tensions.
LIMA, Peru — In a historic final encounter, U.S. President Joe Biden and Chinese President Xi Jinping reached a pivotal agreement at the APEC summit, affirming that artificial intelligence will not control nuclear weapons systems. Both leaders emphasized the necessity of maintaining human oversight in nuclear decision-making and called for the responsible development of AI in military applications.
This accord represents a breakthrough after years of stalled dialogue on arms control, often disrupted by geopolitical tensions such as U.S. arms sales to Taiwan. National Security Adviser Jake Sullivan hailed the agreement as a crucial step in reducing global nuclear risks and fostering trust between the two superpowers.
Beyond nuclear safety, the talks tackled pressing global and bilateral challenges. Biden and Xi made progress on the release of two wrongfully detained U.S. citizens in China and deliberated on North Korea's support for Russia in the Ukraine conflict. Biden urged Xi to exert greater influence over Pyongyang, reflecting U.S. concerns over regional stability.
Meanwhile, Biden raised longstanding issues regarding China's trade practices, reaffirming the U.S. commitment to safeguarding its technologies from misuse while promoting fair trade. These discussions, occurring in the twilight of Biden’s presidency, underscored his efforts to stabilise relations before the return of Donald Trump, a president whose foreign policy stance often eschews multilateral diplomacy.
China’s Broader Strategy and Xi Jinping’s Charm Offensive
While the APEC summit showcased a moment of rare cooperation, it also highlighted China’s broader ambitions. Xi Jinping’s approach to global diplomacy has evolved, marked by a shift from high-cost infrastructure projects to strategic investments in AI, renewable energy, and advanced technology.
During his Latin America tour and other international engagements, Xi has actively sought to position China as a stabilising global force, especially as the U.S. faces leadership uncertainty. His proactive diplomacy at the G20 summit in Rio de Janeiro and the APEC summit included forging ties with leaders like Brazil’s President Luiz Inácio Lula da Silva and Australia’s Prime Minister Anthony Albanese, advocating for free trade and regional stability.
However, this charm offensive is a direct strategic and calculated effort to shape perceptions ahead of the incoming Trump administration. Analysts see Xi’s actions as an attempt to preemptively navigate potential tensions with the U.S. while reinforcing China’s global partnerships.
By engaging directly with Latin America, where China is now the second-largest trading partner, Beijing aims to diversify its alliances amid domestic economic challenges. Xi’s team has subtly signaled a willingness to maintain dialogue with Trump administration, recognizing the need for open communication to manage an increasingly complex and interconnected geopolitical landscape. As the Biden-Xi agreements lay the groundwork for future cooperation, China’s diplomatic strategy suggests a readiness to adapt to the shifting tides of U.S. foreign policy.
This week saw AI rivalry intensify and major tech earnings shake up the market. DeepSeek’s breakthrough rattled U.S. tech giants, while Microsoft and Meta’s results underscored the rewards—and risks—of AI investments. Here’s what’s driving Wall Street’s latest moves.
From TikTok’s dance-off to Instagram’s copycat moves, this week saw Trump forge powerful alliances with Silicon Valley’s elite. The launch of the $500B Stargate AI initiative and the fierce rivalry between Elon Musk and Sam Altman highlight a new era where politics and tech collide.
Cisco faces fallout from a massive data leak exposing critical files, while China accuses the U.S. of cyber espionage amid rising tech tensions. AI governance sparks debate as Europe enforces strict rules, and ASIC sues HSBC for $23M scam failures. Global cyber affairs take center stage this week.
The week saw cyber threats shadow Black Friday’s $70B sales, AI reshaping banking, and Meta’s nuclear energy ambitions. ByteDance and Nvidia clashed in the U.S.-China tech war, while Australia pushed Big Tech to fund journalism. A turbulent digital landscape sets the stage for 2025.