BTC crashes! The Sino-US chip war escalates again, and China angrily criticizes the Trump administration for abusing export controls

Trade tensions between the United States and China over technological hegemony have escalated again. Following President Trump's accusation that China violated the initial trade agreement, the Chinese government has countered, strongly condemning the US's "discriminatory export restrictions" in the semiconductor field. The competition between the two sides in AI and high-tech infrastructure is rapidly evolving into a high-tech cold war.

Bit has fallen along with the investment market, dropping over 2% in the past day.

China: US "Abuse" of Export Controls Damages Global Industrial Chain

Liu Pengyu, spokesperson for the Chinese Embassy in the US, told NBC News that China has repeatedly expressed concerns about the US's abusive control measures on semiconductor exports. He stated: "Recently, China has made serious representations to the US multiple times regarding the abuse of export control measures in the semiconductor field and related behaviors."

This statement was made after Trump accused China on social media of violating the trade agreement. Trump claimed that Beijing had not fulfilled the promises of the bilateral preliminary trade agreement. US Trade Representative Jamieson Greer also said in an interview: "The Chinese side deliberately delays the implementation of the agreement."

Geneva Reaches 90-Day Truce Agreement, China Demands US Comply with Promises

After the Geneva talks on May 12, the US and China agreed to suspend new tariffs for 90 days to seek to ease tensions. However, this temporary truce seems unable to prevent the escalation of conflicts.

"China once again urges the US to immediately correct its wrong practices, stop discriminatory restrictions against China, and jointly maintain the consensus reached in the high-level Geneva talks," Liu Pengyu added.

Huawei Suffers! US AI Chip Ban Angers Beijing

China's protest also echoes the recent severe sanctions against Huawei. The US not only prohibits domestic enterprises from importing Huawei AI chips but also does not allow enterprises to use these chips in their own products. China believes this approach not only strikes Chinese enterprises but also distorts the fair competitive environment of the global tech market.

This series of measures is part of the US defense strategy, targeting China's technological blockade since the Trump administration. In 2019, the Trump administration cut off Huawei's access to US technology, causing Huawei's mobile business to stall until the company developed its own chips independent of US technology.

Nvidia Warns: Blockade Will Only Force China to Build Its Own Ecosystem

The US export controls on Chinese chips not only impact China but also cause huge losses to US tech companies. AI chip leader Nvidia has frequently publicly opposed the government's export restriction policies.

Nvidia was notified earlier this year that it cannot export its H20 chip designed for the 2022 export regulations to China. The company stated that this restriction will cause it to lose up to $8 billion in sales this quarter. Additionally, Nvidia has accumulated $4.5 billion worth of inventory chips that cannot be resold.

Nvidia CEO Jensen Huang directly stated in the earnings call: "The US policy assumes that China cannot make AI chips. This assumption was already questionable, and now it is clearly wrong."

Software Suppliers Also Suffer, US Commerce Department Issues Sales Restrictions

In addition to hardware chips, the US government is also pressuring design software suppliers. Companies like Synopsys and Cadence Design Systems have recently received letters from the US Department of Commerce requesting them to stop selling software products to China. This series of restrictions is gradually cutting off China's dependence on key technologies for AI development, with the US attempting to gain the technological high ground.

AI Export Regulations May Be Rewritten, Trump Revokes Biden's Restriction Order

It is worth noting that Trump has recently revoked the Biden administration's "AI Diffusion Rule". This rule was originally intended to restrict AI chip exports to most countries. It is understood that the Trump administration is planning to issue a more simplified export rule, expected to be released within months.

Technology Hegemony Battle Sees No End

The confrontation between China and the US in semiconductor and AI technologies is no longer just a trade issue, but a major battle concerning national security and global industrial dominance. As both sides continue to escalate sanctions and countermeasures, this technological war not only impacts companies from both countries but will inevitably bring profound effects to the global supply chain and innovation landscape.

The US Bitcoin enterprise Twenty One (stock code CEP), directly invested in by Tether, the world's largest stablecoin issuer, has raised an additional $100 million through the sale of convertible notes. Twenty One already has 46,812 BTC as a baseline, and with the recently raised $100 million, the total BTC amount is expected to reach over 47,700, quickly catching up with the second-place MARA Holdings.

(Tether's Ambition and Blueprint for Direct Investment in Twenty One's Shares)

Who are the Initial Investors of CEP?

The US Bitcoin enterprise Twenty One will merge and go public with Cantor Equity Partners (stock code CEP), a special purpose acquisition company (SPAC) under Cantor Fitzgerald, with Jack Mallers, founder of Strike, serving as CEO. The shareholder lineup includes Tether, Japanese Softbank Group, Bitfinex, and Cantor Fitzgerald.

Tether and Bitfinex will directly transfer 31,500 BTC in exchange for equity in the new company. Softbank Group will buy BTC with cash through Tether, becoming the second-largest shareholder.

After the transaction, Tether will have 51.7% voting rights, holding absolute say.

Twenty One Raises Additional $100 Million in Convertible Debt

According to previous reports, Tether purchased $467 million worth of BTC in mid-May according to the merger agreement terms, storing the BTC in Tether-held or operated digital wallets. Based on the provided wallet address, they bought 4,812.22 BTC at an average cost of $97,402 per BTC. The funds were raised through private investment (PIPE) and convertible debt totaling $500 million.

According to their latest SEC filing, investors have subscribed to an additional $100 million in convertible notes, maturing in 2030, with a 1% interest rate, under the same previous conditions.

However, these funds have not yet been used to purchase BTC.

CEP Will Soon Surpass MARA, Becoming the World's Second-Largest Bitcoin-Holding Public Company

Although the wallet balance remains at the previous 4,812 BTC, according to the previously announced cooperation agreement:

• Tether and Bitfinex will directly transfer 31,500 BTC in exchange for equity in the new company
• Softbank will invest with cash equivalent to 10,500 BTC

Taking this into account, Twenty One already has a baseline of 46,812 BTC, and with the recently raised $100 million, the total BTC amount is expected to reach over 47,700, quickly catching up with the second-place MARA Holdings (currently holding 48,137 BTC).