Core Viewpoint - The article discusses the recent tariff adjustments between the US and China, highlighting a temporary compromise in the ongoing tech rivalry, particularly in the semiconductor sector, which presents both short-term benefits and long-term challenges for the industry [2][19]. Policy Framework and Execution Mechanism - The US has reduced tariffs on semiconductor-related imports from a maximum of 145% to 30%, while China has lowered its retaliatory tariffs from 125% to 10%, with a 90-day negotiation buffer until August 12, 2025 [2]. - Sensitive areas like semiconductor equipment and AI chips remain excluded from tariff reductions, and the US continues to enforce technology restrictions through an "entity list" [2][7]. Industry Chain Cost Restructuring and Market Segmentation Short-term Cost Improvement and Supply Chain Recovery - Equipment procurement costs have decreased by approximately 18%-22% for companies like SMIC, facilitating expansion plans for advanced processes [4]. - The utilization rate for automotive chips at SMIC's Tianjin facility has increased from 65% to 82% due to reduced costs for mature process chips [5]. - US companies like Qualcomm and Intel are expected to see a 12%-15% increase in sales in China by the second half of 2025, potentially impacting domestic competitors [6]. Long-term Competition and Structural Challenges - Despite tariff reductions, technology access remains restricted, with delays in SMIC's expansion due to equipment export limitations [7]. - Domestic semiconductor equipment and materials are gaining market share, with the bidding rate for domestic 28nm etching machines increasing from 22% to 37% [9]. - The global semiconductor supply chain is undergoing regional restructuring, with increased compliance costs for companies adapting to new trade rules [10]. Differentiated Impact and Strategic Choices in Sub-sectors Semiconductor Equipment and Materials - The cost of exporting lithography and etching machines to China has decreased, but key technologies like EUV lithography remain restricted [11]. - Domestic companies are focusing on technological breakthroughs to reduce costs in semiconductor materials, with current profit margins significantly lower than international competitors [11]. Chip Design and Manufacturing - The import cost of high-end AI chips has decreased by 24%, but US policies may restrict sales to China [12]. - SMIC and Huahong Semiconductor are enhancing their competitiveness in automotive chips, but face pricing pressures from international competitors [12]. Packaging and Testing - SMIC's advancements in advanced packaging technologies may attract more AI chip orders, but competition from US subsidies for TSMC could divert high-end demand [13]. Corporate Response Strategies and Market Outlook Short-term Strategies - Companies are diversifying their supply chains, with SMIC shifting 20% of its equipment procurement to Japan and Europe [14]. - Inventory management strategies are being implemented to mitigate risks from fluctuating tariff policies [15]. Long-term Strategies - Investments in domestic technology are being prioritized, with significant funding directed towards local semiconductor manufacturers [16]. - Companies like Huawei are expanding their market presence in Southeast Asia and the Middle East, with overseas revenue expected to rise [16]. Future Trends - The tariff adjustments represent a temporary easing in US-China tech tensions, but core issues like technology restrictions and industrial subsidies remain unresolved [19]. - The semiconductor industry is expected to experience short-term cost improvements alongside long-term competitive pressures, with key negotiations in the next 90 days being critical for future stability [19].

Core Viewpoint - The European Union Aviation Safety Agency (EASA) has delayed the airworthiness certification of China's C919 aircraft, stating it will take an additional 3 to 6 years for the certification process to complete, which has raised concerns about the motivations behind this delay and its implications for the aviation market [1][5][10]. Group 1: EASA's Certification Delay - EASA has used the term "technical familiarity" to justify the delay in the airworthiness certification of the C919, indicating that it is unlikely to receive certification this year [1]. - The Chinese Ministry of Commerce has responded to the situation, suggesting a confrontational stance against EASA's prolonged certification process, which has lasted six years [5]. - The delay is perceived as a strategic move by EASA to protect the interests of European aerospace giants Airbus and Boeing, preventing competition from the C919 [7][10]. Group 2: Market Dynamics and Opportunities - The ongoing delays in certification have created a unique opportunity for the C919, as domestic orders have surged past 1,000 units, significantly overshadowing Airbus's orders in China [16]. - The C919 has gained traction in international markets, with significant orders from countries like Saudi Arabia, which has placed an order for 10 aircraft, showcasing a shift in market dynamics [12][16]. - The C919's safety record is highlighted as superior to that of Boeing's troubled aircraft, which may influence consumer preferences and order flows in the aviation market [17][20]. Group 3: Strategic Implications for the Aviation Industry - The situation illustrates a broader trend where Western technology restrictions may inadvertently accelerate the development of China's aviation industry, leading to the emergence of alternative solutions and partnerships [16][17]. - The potential for the C919 to capture market share in the Middle East and Southeast Asia could disrupt the existing duopoly of Boeing and Airbus, leading to a reevaluation of their market strategies [21][23]. - The ongoing delays and strategic maneuvers by EASA may result in a significant shift in the global aviation landscape, with the possibility of new alliances forming outside of the traditional Western framework [21][23].

Group 1: US-China Negotiations - The US has extended an olive branch to China for negotiations, but China's response indicates a need for sincerity from the US side [2] - The US is facing economic pressures from the ongoing tariff war, with warnings of a recession and declining trust from international allies like Japan [2] - Japan's willingness to negotiate regarding US debt holdings highlights vulnerabilities in the US financial system [2] Group 2: Chip War Dynamics - Trump's chip policy is an escalation of existing restrictions, targeting companies like Nvidia and aiming to pressure China into concessions [4] - China's self-sufficiency in chip production is increasing, with projections of a 30% self-sufficiency rate in 2024 and 45% by 2025 [4] - Historical examples show that US technology restrictions often lead to accelerated advancements in Chinese technology [4][7] Group 3: Nvidia's Position - Nvidia's CEO, Jensen Huang, suggests that US export restrictions could inadvertently strengthen China's competitive edge [6] - The US has a pattern of restricting technologies that China has not yet mastered, but once China achieves breakthroughs, restrictions are lifted [6][7] - Nvidia's revenue from the Chinese market constitutes 40% of its data center business, indicating significant financial risk if China shifts to self-reliance [7] Group 4: Future Considerations - The US-China competition is not a zero-sum game; mutual respect and equality are essential for productive negotiations [9] - The US should focus on fair competition in emerging sectors like renewable energy and artificial intelligence rather than relying on restrictive measures [9]