China has added 20 Japanese defence-linked and technology entities to its export control blacklist, marking a fresh escalation in the already tense relationship between Beijing and Tokyo. The decision blocks the listed organisations from receiving Chinese dual-use goods, materials and technologies without official approval. Beijing said the move was linked to national security, non-proliferation commitments and concerns over supplies that

OpenAI begins restricted rollout of new AI model series OpenAI has launched a limited preview of its latest artificial intelligence model series in the United States, restricting access to a small group of trusted partners following coordination with government authorities. The rollout marks one of the most controlled releases in the company’s history, reflecting growing regulatory attention around advanced AI systems and their potential national security implications. Government oversight shapes early deployment strategy The preview follows increased scrutiny from US policymakers, including a recent executive order establishing a voluntary federal review framework for high-capability AI models prior to public release. Under the arrangement, OpenAI briefed government officials on the capabilities of its new models before deployment. Access has been limited to selected US-based organisations, although employees working outside the United States within those organisations may still interact with the system under controlled conditions. The company stated that the decision to restrict access was made in coordination with authorities overseeing AI risk management. GPT 5.6 series introduces tiered model architecture The newly introduced GPT 5.6 series includes three distinct models designed for different use cases. The flagship model, Sol, is positioned for high-performance tasks requiring advanced reasoning capabilities. Terra is optimized for general-purpose applications and everyday workloads, while Luna is designed as a faster and lower-cost alternative for scalable deployment. OpenAI also indicated that once the models are broadly released, Terra will be priced significantly lower than its predecessor, reflecting competitive pressure in the AI sector. Broader US policy shifts impact AI ecosystem The controlled rollout comes amid broader regulatory changes affecting the artificial intelligence industry. In a parallel development, US authorities recently adjusted restrictions on competing AI systems, allowing wider institutional access to previously constrained models following earlier national security concerns. These policy shifts highlight an evolving approach in Washington, balancing innovation in AI development with safeguards intended to reduce misuse risks. The developments also underscore intensifying competition among major AI firms as governments increasingly play a direct role in shaping deployment boundaries.

Sen. Elizabeth Warren of Massachusetts is preparing to introduce a Senate resolution that would formally condemn and seek the reversal of a proposed sale of 500,000 advanced artificial intelligence chips annually to the United Arab Emirates, arguing the transaction could threaten U.S. national security and raise serious ethical questions about conflicts of interest. The measure is expected to be brought to the Senate floor on Thursday, where Warren plans to call for lawmakers to block the exp

A United States federal court has sentenced an Indian businessman to 30 months in prison for orchestrating a scheme to illegally export controlled aviation technology to Russia, in violation of strict US export regulations introduced after the Ukraine conflict. The sentencing underscores Washington’s continued focus on disrupting global supply chains used to bypass sanctions and export controls aimed at safeguarding national security. Sanjay Kaushik, 58, a New Delhi-based aviation

The strategic rivalry between the United States and China in the semiconductor sector continued to intensify throughout 2025, with export controls remaining a central instrument in what has come to be known as the global chip war. The dispute, rooted in concerns over national security, technological leadership and economic influence, significantly affected the semiconductor industry, global supply chains and investment decisions during the year. At the start of 2025, the United States maintained restrictions on the export of advanced artificial intelligence chips and related technologies to China. These controls were designed to limit Beijing’s access to cutting-edge computing capabilities that could be applied to military and surveillance technologies. US officials defended the measures as necessary to protect national security interests, but the restrictions had immediate commercial consequences for American chipmakers with strong exposure to the Chinese market. Companies producing high-performance AI chips, including industry leaders such as Nvidia, reported revenue pressures linked to reduced access to Chinese customers. The curbs also led to higher compliance costs and uncertainty over long-term market strategies. Industry executives warned that prolonged restrictions could weaken the global competitiveness of US firms while accelerating China’s efforts to develop independent semiconductor capabilities. Policy signals shifted after Donald Trump assumed the US presidency in January. His administration moved to ease certain export controls on advanced AI chips for what were described as approved customers in China. Under the revised framework, sales of Nvidia’s H200 chip were permitted, subject to conditions that included profit-sharing arrangements with the US government. The adjustments were widely interpreted as an attempt to balance national security concerns with the commercial interests of American technology companies. China responded to the US measures by criticising what it described as discriminatory semiconductor policies and urging Washington to reverse the controls. Beijing argued that the restrictions were disrupting global supply chains and undermining fair competition in the semiconductor industry. At the same time, Chinese authorities accelerated domestic initiatives aimed at strengthening the country’s chip manufacturing ecosystem and reducing reliance on foreign suppliers. As part of its response, China imposed export controls on several rare earth elements, materials that are essential for semiconductor production and advanced electronics. China holds a dominant position in the global rare earth supply, making these measures a powerful lever in the broader technology competition. The restrictions heightened concerns among manufacturers worldwide about material availability and supply chain resilience. The prolonged US-China chip war had ripple effects across global markets. American and allied semiconductor firms experienced volatility in revenues and share prices as companies reassessed exposure to geopolitical risk. Investment patterns shifted as manufacturers sought to diversify production and sourcing to reduce dependence on any single market. Chinese technology firms increasingly turned to domestic suppliers, accelerating efforts to replace restricted foreign components with locally developed alternatives. In parallel, the United States expanded its focus on strengthening domestic semiconductor production through subsidy programmes under the CHIPS Act. The initiative supported the construction of new fabrication plants and aimed to secure long-term technological leadership by rebuilding advanced manufacturing capacity within the country. By late 2025, both Washington and Beijing took limited steps to ease tensions, agreeing to suspend certain rare earth export controls. While the move signalled a willingness to manage escalation, the underlying competition in advanced chip technologies remained unresolved. The year underscored how deeply the semiconductor rivalry has become embedded in global trade, industrial policy and national security calculations, with lasting implications for the future of the technology sector.

The recent developments in the semiconductor industry highlight a complex and evolving battle over technological supremacy, led prominently by the United States and China. When Huawei launched its Mate 60 Pro smartphone equipped with an advanced 7-nanometer chip despite stringent US export restrictions, it sent shockwaves through the global tech community. This event underscored that innovation can persist even in the face of severe sanctions. The US responded swiftly by tightening export contro