News earlier this week reported that President Trump had approved exports of Nvidia’s AI H200 chips to China. Shortly afterward, however, reports emerged that Beijing plans to limit access to those advanced chips as it pushes to strengthen domestic chip innovation and production and reduce reliance on U.S. technology.

Both the U.S. and China are deploying national strategies through a whole-of-government approach to bolster key industries. In the U.S., Trump has developed a national strategy around chips, rare earths, and revitalizing manufacturing, and could soon announce a new strategy focused on humanoid robots.

In China, Beijing is set to unveil a massive incentive package worth up to $70 billion to bolster the domestic chipmaking industry, Bloomberg reported, citing sources familiar with ongoing discussions.

Even at the low end, the massive incentive package would rival the U.S. Chips Act. At the top end, it would represent the most extensive state-backed semiconductor program China has ever put forward.

Here are more details from the report:

• The new semiconductor support package is worth between $28 billion and $70 billion.

• The package would involve subsidies and financing support separate from existing vehicles like the $50 billion Big Fund III.

• Beijing aims to reduce reliance on foreign chipmakers such as Nvidia and to accelerate the rise of domestic champions like Huawei, SMIC, Cambricon, and Moore Threads.

Beijing’s “whole nation” strategy under President Xi Jinping is another clear signal that the US and China are locked in a broadening superpower rivalry race...

This rivalry is not a traditional shooting war, at least for now. Instead, it is being fought across technology, economics, military power, finance, and competing economic systems. It is a new Cold War that has been unfolding for more than a decade.

President Trump is the first US president to directly confront this uncomfortable reality through a Make America Great Again framework, centered on reshoring critical industries, rebuilding manufacturing, and preparing the country for an increasingly volatile 2030s.

Democrats, on the other hand, have responded to the MAGA agenda with lawfare and pressure campaigns driven by far-left activist groups, raising a more fundamental question about where the modern left-wing party, increasingly embracing socialist and Marxist ideas, places its allegiance.