The global tech landscape is in constant flux, but few areas are as critical and complex as the techno-nationalist competition between the US and China. This morning, I discussed these intricate dynamics with Haidi Stroud-Watts and Paul Allen on Bloomberg News, diving deep into the latest news about Washington’s roll-back on export controls of Nvidia’s H20 chips, the chip war and the quest for technological self-sufficiency.

This is Part 1 of a 3-part series, with more insights in parts 2 & 3. Here are some key takeaways from our conversation:

1️⃣ The Techno-Nationalist Divide: The competition for technological dominance between the US and China is shaping global dependencies, from rare earths to critical minerals. 2️⃣ Chip Dependencies and Quid Pro Quo: While China has an insatiable appetite for chips, there's a strategic interplay. Some believe creating Chinese dependency on US-designed chips could hinder their self-sufficiency efforts, though broad technological denial is not going to work in the long run.

3️⃣ China's AI Ambitions & Legacy Chips: China hugely benefits from access to chips like the H20 for its burgeoning AI sector. While these may not be the most advanced chips , they are crucial stepping stones for China.

4️⃣ The Future of Chip Manufacturing: We need to clearly distinguish between advanced and legacy chips. Advanced chips are impossibly hard to make and to catch up in. However, China is poised to capture more of the legacy chip market, which are very significant portion of the market for lucrative industries.

5️⃣ No Return to "One Big Happy Trading Family": As I noted, "anybody who thinks that this is sort of a return to one big happy trading family, I think is going to be mistaken". The path to self-sufficiency for China, even in legacy chips, still involves reliance on foreign technology. Check out Part 2 & 3 on export controls and rare earths!