MEF BUSINESS NEWS 16 APR 2025 Nvidia is bracing for a $5.5 billion hit as Washington tightens export restrictions on AI chips to China. The U.S. now requires special licenses to sell Nvidia’s H20 processor—originally designed to sidestep previous bans—over fears it could fuel Chinese supercomputers. The move sent Nvidia shares tumbling and rattled Asian tech stocks. It’s the latest blow in an escalating tech and trade war, with the U.S. targeting China’s AI ambitions while pressing allies to do the same. Nvidia, once the world’s most valuable company, now finds itself at the crossroads of innovation and geopolitics. ———————————— Boeing is another major casualty of the U.S.-China trade war. China has told airlines to halt new Boeing orders and delay deliveries, dealing a blow to the jet maker already hit by tariffs, weak demand, and supply chain issues. A full delivery freeze could cost Boeing $1.2 billion this year, giving Airbus an edge in the crucial Chinese market. ———————————- China’s economy got a head start this year, growing 5.4% in the first quarter—thanks in large part to a surge in exports to the U.S. before a fresh wave of tariffs kicked in. But that early momentum may not last. With Washington and Beijing now trading steep tariffs—some topping 100%—economists warn China’s growth could slump to just 3% by year’s end. U.S. importers are pulling back, Chinese ports are quieter, and many exporters say American orders have dried up. Beijing is trying to counter the blow with stimulus spending and trade-in incentives at home, but the outlook is clouded as global demand weakens and the trade war drags on. ————————————- The Trump administration plans to pressure U.S. allies to limit economic ties with China in exchange for tariff relief, the Wall Street Journal reported citing people with knowledge of the conversations. Treasury Secretary Scott Bessent is leading talks with over 70 nations, urging them to block Chinese goods and factories to isolate Beijing. The goal is to weaken China’s economy ahead of possible Trump-Xi talks. Meanwhile, China is countering with its own trade deals, including one with Vietnam. ———————————— A former top Chinese official says don’t expect talks with Washington unless the U.S. shows more respect. In an interview with Bloomberg, Zhu Guangyao, once China’s vice finance minister, warned that Beijing won’t negotiate under threats, and slammed Trump’s tariff hike—now as high as 145%—as damaging and coercive. While both sides remain in technical contact, Zhu says real dialogue needs mutual respect and cooperation. Despite mounting pressure from the trade war and a shaky economy, Beijing insists it can still hit its 5% growth target this year. But for now, the world’s two largest economies are talking tough—not talking terms. —————————————— Italy’s prime minister Giorgia Meloni faces a critical test as she meets Donald Trump at the White House, aiming for tariff relief and defense deals. After months of preparation, Meloni hopes to propose eliminating industrial tariffs between the U.S. and the EU, creating a free-trade zone, according to Bloomberg. However, given Trump’s unpredictable nature, expectations are low. A successful outcome could boost her standing on the global stage, but failure may complicate her domestic position, especially with coalition partner Matteo Salvini ready to challenge her. —————————————- Meanwile, Europe’s financial markets are outperforming America, fueled by Donald Trump’s trade policies, which have undermined U.S. dominance. The euro is at a three-year high, and German bonds have outpaced U.S. Treasuries. Investors are turning to Europe as a safe haven. Major financial firms, including Vanguard and Goldman Sachs, are betting on European assets. The shift reflects a broader view that Europe is more resilient and offers potential as the euro may increasingly rival the dollar as a global reserve currency. Despite challenges, European markets are seen as a compelling alternative. —— —— MEF MOBILE NEWS 16 APR 2025 As tensions rise between the U.S. and China over global tech dominance, European telecom companies are caught in the middle, particularly when it comes to satellite internet. Federal Communications Commission chair, Brendan Carr, has warned European nations that they must choose between U.S. or Chinese technology, particularly with regard to Elon Musk’s Starlink, which is making waves for its satellite broadband services. Carr’s comments come as Europe looks to bolster its own satellite infrastructure, yet experts say no European provider is currently capable of competing at Starlink’s level. The shift could have significant implications for the mobile ecosystem, as telecom giants like BT and Virgin Media O2 trial Starlink’s services for mobile broadband. With both geopolitics and technology at stake, Europe faces a crucial decision in balancing its alliances. ————————————- As the U.S.-China trade war intensifies, a Chinese e-commerce app has seen a surge in popularity among American shoppers. DHgate, a platform for cross-border commerce, rocketed to the second-most downloaded app on the U.S. Apple App Store, driven largely by viral TikTok videos, according to the Wall Street Journal. These videos, posted by Chinese influencers, expose the inner workings of global supply chains, showing how luxury items like yoga pants and handbags, often sold at steep prices in the West, are made in the same Chinese factories for a fraction of the cost. Despite heavy tariffs, DHgate allows U.S. buyers to access these unbranded goods directly from Chinese factories, highlighting a growing shift in the mobile shopping ecosystem towards more affordable, globally-sourced products. ———————————— Meta CEO Mark Zuckerberg testified in an ongoing antitrust trial, defending the company’s acquisitions of Instagram and WhatsApp. He argued these deals were not anti-competitive, claiming that Instagram’s growth accelerated significantly under Meta’s leadership. The FTC, however, accuses Meta of using its dominance to suppress competition and monopolize the social media space. Internal emails revealed Zuckerberg’s 2018 concern about being forced to spin off Instagram and WhatsApp due to increasing pressure on big tech, highlighting potential regulatory challenges. As the trial continues, the court will determine if these acquisitions violated antitrust laws, which could have major implications for Meta’s mobile and app ecosystems. ———————————- Mark Zuckerberg offered $450 million to settle the FTC’s antitrust case against Meta, according to the Wall Street Journal. Far below the FTC’s $30 billion demand. Despite Zuckerberg’s lobbying, including seeking Trump’s help, the FTC rejected the offer and pushed the case to trial. —————————————- The global smartphone market showed a 3% year-on-year growth in Q1, with strong performances in markets like China, Latin America, Asia Pacific, and MEA, thanks to China’s subsidy program and regional recoveries. According to preliminary figures from Counterpoint Research Apple topped the market with a 19% share, largely driven by the launch of its iPhone 16e, which boosted sales in Japan, India, MEA, and Southeast Asia. Chinese brands Xiaomi and Vivo also saw significant growth in domestic and emerging markets. However, the recovery faces a major hurdle from the ongoing trade war. The researchers lowered expectations for the full year, predicting now a slight decline in volume sales instead of the 4% increase previously forecasted. Trump’s unpredictable tariff decisions, including conflicting reports on exemptions for certain electronic components, have created uncertainty that could stall growth in the smartphone sector. —————————————- Ericsson reported a solid Q1 with a 3% year-on-year revenue increase to SEK55 billion ($5.6B) and a 61% rise in net profit to SEK4.2 billion, driven by strong performance in the Americas. CEO Borje Ekholm emphasized the company’s resilience amid global economic volatility and tariffs, crediting its diversified, customer-proximate manufacturing strategy. While acknowledging macroeconomic challenges, he expressed confidence in Ericsson’s ability to navigate uncertainty through disciplined pricing and spending controls. Ekholm highlighted continued strength in mobile networks and predicted the enterprise segment would stabilize in 2025. Notable wins in the quarter included its first programmable networks deal in Asia-Pacific and new API fraud detection agreements with all three major U.S. carriers via its Aduna venture. ————————————— Apple’s top executive overseeing enterprise sales and Western Europe, Mark Rogers, will depart in the fall after 27 years with the company. His role will be divided between Juan Castellanos, who will take over Western Europe, and Vivek Thakkar, who will manage global enterprise sales. The restructuring follows recent executive departures. ————————————- Deutsche Telekom has set a new quantum networking record, successfully transmitting quantum data over a distance of 82 kilometers while maintaining over 92% fidelity, alongside regular data traffic. In another test, it achieved 99% fidelity over 30 kilometers for 17 days. These experiments, conducted with quantum hardware provider Qunnect, demonstrate the potential of quantum networks for secure communication, time synchronization for satellites, and precise industrial IoT sensing. Claudia Nemat, DT’s board member for technology, emphasized that their fiber optics are already prepared for the quantum internet. —— —— MEF TECH NEWS 16 APR 2025 ASML reported weaker-than-expected Q1 orders, booking €3.94 billion—well below analyst forecasts of €4.82 billion—amid growing concerns over U.S. tariff policies that could disrupt the semiconductor sector. CEO Christophe Fouquet said recent tariff announcements have increased macro uncertainty, with the company still unsure how to fully quantify the potential impact. CFO Roger Dassen noted possible risks include extra costs on U.S. shipments and retaliatory tariffs from other countries. Despite this, ASML remains optimistic about long-term growth, projecting 2025 and 2026 to be strong years, thanks to continued AI-driven demand. The company held its revenue target of €44–60 billion by 2030. China accounted for 27% of Q1 system sales, second only to the U.S. While the Trump administration has exempted certain electronics and chipmaking tools from recent tariff hikes, investigations into the national security risks of semiconductor imports suggest further trade turbulence could lie ahead. —————————— Anthropic is close to launching a voice assistant feature for its Claude chatbot, aiming to compete with OpenAI’s voice-enabled ChatGPT. Internally called “voice mode,” it’s expected to debut soon in limited release, offering three voices: Airy, Mellow, and a British-accented Buttery. The timeline could still shift. This feature was spotted in publicly available iOS app code by an independent researcher and confirmed by Bloomberg. While Anthropic has previously acknowledged working on voice functionality, this is the first time specific voices and rollout plans have come to light. The company declined to comment. Anthropic has been ramping up its features to match OpenAI and Google, positioning itself as a safety-first AI provider. It recently introduced “Research,” a new tool that combines web and internal company data to deliver sourced, comprehensive responses—similar to OpenAI’s Deep Research. Claude users will also soon be able to search Gmail, Google Calendar, and Google Docs directly within the assistant. ———————————— The “Silicon Six” – Amazon, Meta, Alphabet, Netflix, Apple, and Microsoft – are under fire for allegedly avoiding nearly $278 billion in U.S. corporate tax over the past decade. A report from the Fair Tax Foundation found the firms paid just 18.8% in corporate taxes on average, well below the U.S. average of 29.7%. Excluding one-off tax payments, the effective rate drops to 16.1%. The report accuses them of “hardwiring” tax avoidance into their structures and using aggressive practices like booking profits in low-tax countries. The companies defend their practices as legal and compliant with local tax laws. ———————————— China has accused three US NSA employees of hacking the 2025 Asian Winter Games, marking a rare move to publicly name alleged foreign spies. Authorities claim the hackers targeted sensitive infrastructure and personal data. This mirrors the US’s long-time “name and shame” strategy and signals a shift in China’s cyber policy. Analysts see it as part of escalating US-China tensions, especially as trade wars heat up. The NSA hasn’t commented, and China hasn’t provided technical proof. Still, the outing is seen as a strategic retaliation tied more to politics than just cybersecurity. —— ——

MEF BUSINESS NEWS 16 APR 2025 Nvidia is bracing for a $5.5 billion hit as Washington tightens export restrictions on AI chips to China. The U.S. now requires special licenses to sell Nvidia’s H20 processor—originally designed to sidestep previous bans—over fears it could fuel Chinese supercomputers. The move sent Nvidia shares tumbling and rattled Asian tech stocks. It’s the latest blow in an escalating tech and trade war, with the U.S. targeting China’s AI ambitions while pressing allies to do the same. Nvidia, once the world’s most valuable company, now finds itself at the crossroads of innovation and geopolitics. ———————————— Boeing is another major casualty of the U.S.-China trade war. China has told airlines to halt new Boeing orders and delay deliveries, dealing a blow to the jet maker already hit by tariffs, weak demand, and supply chain issues. A full delivery freeze could cost Boeing $1.2 billion this year, giving Airbus an edge in the crucial Chinese market. ———————————- China’s economy got a head start this year, growing 5.4% in the first quarter—thanks in large part to a surge in exports to the U.S. before a fresh wave of tariffs kicked in. But that early momentum may not last. With Washington and Beijing now trading steep tariffs—some topping 100%—economists warn China’s growth could slump to just 3% by year’s end. U.S. importers are pulling back, Chinese ports are quieter, and many exporters say American orders have dried up. Beijing is trying to counter the blow with stimulus spending and trade-in incentives at home, but the outlook is clouded as global demand weakens and the trade war drags on. ————————————- The Trump administration plans to pressure U.S. allies to limit economic ties with China in exchange for tariff relief, the Wall Street Journal reported citing people with knowledge of the conversations. Treasury Secretary Scott Bessent is leading talks with over 70 nations, urging them to block Chinese goods and factories to isolate Beijing. The goal is to weaken China’s economy ahead of possible Trump-Xi talks. Meanwhile, China is countering with its own trade deals, including one with Vietnam. ———————————— A former top Chinese official says don’t expect talks with Washington unless the U.S. shows more respect. In an interview with Bloomberg, Zhu Guangyao, once China’s vice finance minister, warned that Beijing won’t negotiate under threats, and slammed Trump’s tariff hike—now as high as 145%—as damaging and coercive. While both sides remain in technical contact, Zhu says real dialogue needs mutual respect and cooperation. Despite mounting pressure from the trade war and a shaky economy, Beijing insists it can still hit its 5% growth target this year. But for now, the world’s two largest economies are talking tough—not talking terms. —————————————— Italy’s prime minister Giorgia Meloni faces a critical test as she meets Donald Trump at the White House, aiming for tariff relief and defense deals. After months of preparation, Meloni hopes to propose eliminating industrial tariffs between the U.S. and the EU, creating a free-trade zone, according to Bloomberg. However, given Trump’s unpredictable nature, expectations are low. A successful outcome could boost her standing on the global stage, but failure may complicate her domestic position, especially with coalition partner Matteo Salvini ready to challenge her. —————————————- Meanwile, Europe’s financial markets are outperforming America, fueled by Donald Trump’s trade policies, which have undermined U.S. dominance. The euro is at a three-year high, and German bonds have outpaced U.S. Treasuries. Investors are turning to Europe as a safe haven. Major financial firms, including Vanguard and Goldman Sachs, are betting on European assets. The shift reflects a broader view that Europe is more resilient and offers potential as the euro may increasingly rival the dollar as a global reserve currency. Despite challenges, European markets are seen as a compelling alternative. —— —— MEF MOBILE NEWS 16 APR 2025 As tensions rise between the U.S. and China over global tech dominance, European telecom companies are caught in the middle, particularly when it comes to satellite internet. Federal Communications Commission chair, Brendan Carr, has warned European nations that they must choose between U.S. or Chinese technology, particularly with regard to Elon Musk’s Starlink, which is making waves for its satellite broadband services. Carr’s comments come as Europe looks to bolster its own satellite infrastructure, yet experts say no European provider is currently capable of competing at Starlink’s level. The shift could have significant implications for the mobile ecosystem, as telecom giants like BT and Virgin Media O2 trial Starlink’s services for mobile broadband. With both geopolitics and technology at stake, Europe faces a crucial decision in balancing its alliances. ————————————- As the U.S.-China trade war intensifies, a Chinese e-commerce app has seen a surge in popularity among American shoppers. DHgate, a platform for cross-border commerce, rocketed to the second-most downloaded app on the U.S. Apple App Store, driven largely by viral TikTok videos, according to the Wall Street Journal. These videos, posted by Chinese influencers, expose the inner workings of global supply chains, showing how luxury items like yoga pants and handbags, often sold at steep prices in the West, are made in the same Chinese factories for a fraction of the cost. Despite heavy tariffs, DHgate allows U.S. buyers to access these unbranded goods directly from Chinese factories, highlighting a growing shift in the mobile shopping ecosystem towards more affordable, globally-sourced products. ———————————— Meta CEO Mark Zuckerberg testified in an ongoing antitrust trial, defending the company’s acquisitions of Instagram and WhatsApp. He argued these deals were not anti-competitive, claiming that Instagram’s growth accelerated significantly under Meta’s leadership. The FTC, however, accuses Meta of using its dominance to suppress competition and monopolize the social media space. Internal emails revealed Zuckerberg’s 2018 concern about being forced to spin off Instagram and WhatsApp due to increasing pressure on big tech, highlighting potential regulatory challenges. As the trial continues, the court will determine if these acquisitions violated antitrust laws, which could have major implications for Meta’s mobile and app ecosystems. ———————————- Mark Zuckerberg offered $450 million to settle the FTC’s antitrust case against Meta, according to the Wall Street Journal. Far below the FTC’s $30 billion demand. Despite Zuckerberg’s lobbying, including seeking Trump’s help, the FTC rejected the offer and pushed the case to trial. —————————————- The global smartphone market showed a 3% year-on-year growth in Q1, with strong performances in markets like China, Latin America, Asia Pacific, and MEA, thanks to China’s subsidy program and regional recoveries. According to preliminary figures from Counterpoint Research Apple topped the market with a 19% share, largely driven by the launch of its iPhone 16e, which boosted sales in Japan, India, MEA, and Southeast Asia. Chinese brands Xiaomi and Vivo also saw significant growth in domestic and emerging markets. However, the recovery faces a major hurdle from the ongoing trade war. The researchers lowered expectations for the full year, predicting now a slight decline in volume sales instead of the 4% increase previously forecasted. Trump’s unpredictable tariff decisions, including conflicting reports on exemptions for certain electronic components, have created uncertainty that could stall growth in the smartphone sector. —————————————- Ericsson reported a solid Q1 with a 3% year-on-year revenue increase to SEK55 billion ($5.6B) and a 61% rise in net profit to SEK4.2 billion, driven by strong performance in the Americas. CEO Borje Ekholm emphasized the company’s resilience amid global economic volatility and tariffs, crediting its diversified, customer-proximate manufacturing strategy. While acknowledging macroeconomic challenges, he expressed confidence in Ericsson’s ability to navigate uncertainty through disciplined pricing and spending controls. Ekholm highlighted continued strength in mobile networks and predicted the enterprise segment would stabilize in 2025. Notable wins in the quarter included its first programmable networks deal in Asia-Pacific and new API fraud detection agreements with all three major U.S. carriers via its Aduna venture. ————————————— Apple’s top executive overseeing enterprise sales and Western Europe, Mark Rogers, will depart in the fall after 27 years with the company. His role will be divided between Juan Castellanos, who will take over Western Europe, and Vivek Thakkar, who will manage global enterprise sales. The restructuring follows recent executive departures. ————————————- Deutsche Telekom has set a new quantum networking record, successfully transmitting quantum data over a distance of 82 kilometers while maintaining over 92% fidelity, alongside regular data traffic. In another test, it achieved 99% fidelity over 30 kilometers for 17 days. These experiments, conducted with quantum hardware provider Qunnect, demonstrate the potential of quantum networks for secure communication, time synchronization for satellites, and precise industrial IoT sensing. Claudia Nemat, DT’s board member for technology, emphasized that their fiber optics are already prepared for the quantum internet. —— —— MEF TECH NEWS 16 APR 2025 ASML reported weaker-than-expected Q1 orders, booking €3.94 billion—well below analyst forecasts of €4.82 billion—amid growing concerns over U.S. tariff policies that could disrupt the semiconductor sector. CEO Christophe Fouquet said recent tariff announcements have increased macro uncertainty, with the company still unsure how to fully quantify the potential impact. CFO Roger Dassen noted possible risks include extra costs on U.S. shipments and retaliatory tariffs from other countries. Despite this, ASML remains optimistic about long-term growth, projecting 2025 and 2026 to be strong years, thanks to continued AI-driven demand. The company held its revenue target of €44–60 billion by 2030. China accounted for 27% of Q1 system sales, second only to the U.S. While the Trump administration has exempted certain electronics and chipmaking tools from recent tariff hikes, investigations into the national security risks of semiconductor imports suggest further trade turbulence could lie ahead. —————————— Anthropic is close to launching a voice assistant feature for its Claude chatbot, aiming to compete with OpenAI’s voice-enabled ChatGPT. Internally called “voice mode,” it’s expected to debut soon in limited release, offering three voices: Airy, Mellow, and a British-accented Buttery. The timeline could still shift. This feature was spotted in publicly available iOS app code by an independent researcher and confirmed by Bloomberg. While Anthropic has previously acknowledged working on voice functionality, this is the first time specific voices and rollout plans have come to light. The company declined to comment. Anthropic has been ramping up its features to match OpenAI and Google, positioning itself as a safety-first AI provider. It recently introduced “Research,” a new tool that combines web and internal company data to deliver sourced, comprehensive responses—similar to OpenAI’s Deep Research. Claude users will also soon be able to search Gmail, Google Calendar, and Google Docs directly within the assistant. ———————————— The “Silicon Six” – Amazon, Meta, Alphabet, Netflix, Apple, and Microsoft – are under fire for allegedly avoiding nearly $278 billion in U.S. corporate tax over the past decade. A report from the Fair Tax Foundation found the firms paid just 18.8% in corporate taxes on average, well below the U.S. average of 29.7%. Excluding one-off tax payments, the effective rate drops to 16.1%. The report accuses them of “hardwiring” tax avoidance into their structures and using aggressive practices like booking profits in low-tax countries. The companies defend their practices as legal and compliant with local tax laws. ———————————— China has accused three US NSA employees of hacking the 2025 Asian Winter Games, marking a rare move to publicly name alleged foreign spies. Authorities claim the hackers targeted sensitive infrastructure and personal data. This mirrors the US’s long-time “name and shame” strategy and signals a shift in China’s cyber policy. Analysts see it as part of escalating US-China tensions, especially as trade wars heat up. The NSA hasn’t commented, and China hasn’t provided technical proof. Still, the outing is seen as a strategic retaliation tied more to politics than just cybersecurity. —— ——