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Good morning, I’m back to Firstft Asia. In today’s newsletter:
Nvidia gets caught up in the US-China trade war
EU car manufacturers seek China’s expertise
Turkish opposition leader writes from his prison
Nvidia was surprised by Donald Trump’s new export controls on China’s top selling artificial intelligence chips. The chipmaker and its clients evaluated the damage caused by the US president’s latest salvo in an escalating trade war.
Billion-dollar blow: The 2.7-ton semiconductor giant revealed a $5.5 billion bill on Tuesday night in connection with new US controls on sales to China. However, industry insiders believe that hit Nvidia’s revenue could reach more than $10 billion.
How Nvidia has become blind: US chipmaker Intel said last week that sales of some advanced AI processors will begin demanding licenses. Nvidia considered it a powerful version of the H20 graphics processing unit of the AI chip, designed to meet Washington’s previous export restrictions.
After meeting with Trump at a Florida residence in Mar Arago earlier this month, Nvidia executives left the impression they could escape the tougher curb enforcement, people said. This has led Nvidia to tell Chinese clients, including tech giants Alibaba, Bytedance and Tencent, that the H20 orders will not be affected, people said.
Nvidia has become blinded as Trump decided to crack down on H20 exports, which have relied on efforts by Chinese tech groups to challenge global peers to develop larger language models.
Here’s how Nvidia’s Chinese business is affected by the latest US restrictions:
Other NVIDIA News: The U.S. House China Committee has asked NVIDIA to explain whether and how Chinese company Deepseek has acquired export-controlled chips to enhance its AI apps.
Shipmaker Shared Sink: Techstock led the Wall Street sale yesterday after Nvidia revealed that it had hit billions of dollars in revenue and had sharply cut its colleagues.
The Chinese e-commerce giant will significantly reduce US advertising spending. Temu and Shein have cut US spending on advertising platforms as they struggle with the end of tax-free, which will help undercut rivals such as Amazon.
Here is the other thing we keep tabs today:
Economic Data: Japan reports trade statistics for March, New Zealand releases first quarter inflation data, and Australia releases monthly employment figures.
US Trade Consultation: Japan’s top trade negotiators traveled to Washington for talks over Trump’s tariffs.
Chagee IPO: China’s tea company is bravely set in a choppy trade war as it seeks to raise nearly $400 million for its New York debut today.
According to an economist surveyed by Bloomberg, the decision on the price of South Korea: Bank of Korea is likely to stabilize its interest rates.
Companies: Taiwanese semiconductor manufacturers and Infosys report the latest results.
Five more top stories
1. The Trump administration has imposed sanctions on Chinese refineries to buy Iranian crude as Washington is increasingly pushing Beijing to curb oil purchases from the country. Chandon Schengking’s chemical target measures marked the second time in a month when the US sanctioned “teapot” refineries. This is the term for an independent Chinese refinery, the main buyer of Iranian crude oil.
2. China’s economy grew at a robust 5.4% in the first quarter of this year as producers front-loaded exports to beat tariffs from Trump. This growth exceeded Beijing’s full-year target in 2025 and the 5.1% forecast by analysts in the Reuters poll.
3. Trump’s tariffs “probably” put the Federal Reserve goals at risk as Chairman Jay Powell warned. “Without price stability, we cannot achieve a strong labor market situation for the long term,” Powell said in a statement to the Chicago economic club.
Related News: Trump’s tariff war will cut North American exports by almost 13% this year, the World Trade Organization warns.
4. Jerry Cardinal’s Redbird Capital partner is planning to control the telegraph, people explained the issue. Under the still-valued plan, the US private equity firm will cut its interest in Abu Dhabi-based IMI to overcome objections from the UK government. This is another thing we know.
5. PWC has suspended operations in more than 12 countries that its global bosses deemed too small, risky or unprofitable, including cutting ties with multiple French-language African member companies. Stephen Foley has more details on the promotion of the Big Four company to avoid further scandals.
Big reading
Twenty years ago, German automotive engineers joked that the Chinese joint venture had no original ideas. The table is now spinning. With a new approach developed by the EU and industry, Europe is trying to leverage Chinese expertise, with one executive saying, “We’ve come fully here.”
We’re reading too. . .
The Ghost of “Poor India”: Satyazit Ray’s “APU Trilogy” discovered a new audience in young cinemas who are more accustomed to Bollywood Bling, writes Andres Sukipani.
Turkey: Iklem Imamor, mayor of Istanbul, who was arrested last month and wrote from prison, explains why his country’s democratic future is a problem for the world.
Ukraine’s Betrayal: The Trump administration’s falsehood of war is causing major damage to America’s global status, Alec Russell wrote.
The chart of the day
India bets on its tradition of “frugal innovation” and a huge high-tech talent pool to keep up with the global artificial intelligence arm race. However, Indian companies have the opportunity to draw levels in areas controlled by the US and China, so Indian companies need to make a bigger bet to fund innovation, according to executives and policymakers.
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