"Xi Jinping Builds 'Negotiation Cards' in Preparation for Trump Trade War"

Bloomberg Analyzes Retaliation Background Including Nvidia Antitrust Investigation

Reports have emerged that China is accumulating negotiation cards in preparation for the trade war expected to unfold after Donald Trump's administration takes office. Analysts suggest that the recent investigation into U.S. semiconductor company Nvidia for antitrust law violations is part of this strategy.

On the 10th (local time), Bloomberg News highlighted China's recent retaliatory measures against U.S. regulations as a defensive strategy aimed at blocking or mitigating the offensive actions of the Trump administration, which will launch in January next year. After the U.S. Department of Commerce added high-bandwidth memory (HBM), a key component of artificial intelligence (AI) chips, to the list of export-controlled items to China earlier this month, China banned the export of four major rare metals?gallium, germanium, antimony, and graphite?to the United States.

Additionally, on the 9th, China announced an investigation into Nvidia for antitrust law violations. It also restricted exports of key components used in drone manufacturing to the U.S. and Europe.

In particular, through the Nvidia-related investigation, China could impose fines of up to 20 billion yuan (approximately 3.9 trillion won), making it a potentially effective negotiation card to check the next Trump administration.

However, Bloomberg analyzed that these successive retaliations serve to heighten tensions but are calibrated to avoid causing substantial damage. Especially considering that Nvidia has already been reducing its business dealings with China for several years, the recent measures are not expected to directly impact Nvidia's sales or growth.

Experts suggest that this level of restraint indicates China may use its retaliatory measures as leverage to engage in a tug-of-war with the Trump administration. Harry Harding, a professor at National Chengchi University in Taiwan, described the recent actions by Chinese authorities, including the Nvidia investigation, as "very cautious retaliation."

There is also speculation that these measures evolved from the trade war experienced during Trump's first term. It is believed that China has been striving to prepare extensions beyond tariffs to use in the trade war with the U.S. For example, targeted export controls on specific product groups and strengthening the Chinese government's control over businesses operating within China are expected to be included.