China has escalated trade tensions with the US, unveiling measures to counter recent restrictions imposed by the Biden administration on AI chip components. Beijing launched an antitrust probe into Nvidia Corp., restricted the export of rare materials used in military applications, and curbed sales of key drone components to the US and Europe. These steps signal readiness for a potential trade war under Donald Trump’s renewed presidency. Analysts note these actions aim to strengthen China’s negotiating position while addressing domestic economic pressures. Beijing is also considering yuan depreciation to offset tariff impacts.
