In May 2026, Beijing was not a city of Cold War tensions, but neither was it a place of complete reconciliation. The red carpet of the Great Hall of the People and the tranquil paths of Tiananmen Park were infused with a palpable tension surrounding the 21st-century global order.
The summit between U.S. President Donald Trump and Chinese President Xi Jinping outwardly conveyed messages of stability and cooperation. However, the real focus of the talks was not tariffs but rather artificial intelligence (AI) and semiconductors. The global power dynamic has shifted from oil, steel, and automobiles to data, computational power, and advanced semiconductors.
A notable moment during the Beijing visit was the presence of Jensen Huang, CEO of NVIDIA. After concluding his schedule in Alaska, President Trump effectively brought Huang directly to Beijing. This was not merely the attendance of a business leader; it symbolized the U.S. beginning to manage AI semiconductors as a strategic national asset.
At one time, the U.S.-China conflict was centered around a tariff war. High tariffs imposed during Trump’s first term shook both Chinese manufacturing and the U.S. consumer market. The U.S. cited the need to address trade deficits and China's unfair trade practices, while China retaliated with its own tariffs. The world became accustomed to the term 'tariff war.'
However, in just a few years, global attention has shifted dramatically. The focus is no longer on “who can sell cheaper goods” but rather “who can design the future civilization.” At the heart of this competition are AI and semiconductors.
Semiconductors are no longer just electronic components; in the AI era, they represent national power. A country's military strength, financial systems, cloud industries, autonomous vehicles, robotics, aerospace, and biotechnology all rely on high-performance semiconductors. Notably, NVIDIA's GPUs are now referred to as the 'oil of the AI era.'
The U.S. is exerting its strongest pressure on China in the field of advanced AI semiconductors. It has restricted exports of high-end AI chips like the H100 and H200 and has tightened controls on advanced semiconductor equipment and software. Companies like ASML from the Netherlands and Japanese semiconductor equipment firms have also partially aligned with U.S. strategies, putting significant pressure on China’s access to advanced processes.
However, China has not easily retreated. Instead, it has elevated semiconductor self-sufficiency to a national survival strategy in response to U.S. pressure. Development of AI chips led by Huawei, the establishment of a domestic GPU ecosystem, memory independence, and the cultivation of Chinese semiconductor equipment are all progressing simultaneously. The recent rise of Chinese AI company DeepMind has also sent shockwaves through the global industry.
DeepMind has achieved significant AI performance through its own optimization technology and efficient computational structure, even with limited access to advanced U.S. chips. This challenges the assumption that “Chinese AI cannot grow without American chips.”
This situation deepens the dilemma for the U.S. While excessive pressure on China may yield short-term advantages for the U.S., it risks accelerating China’s self-sufficiency in the long run. Historically, technology embargoes have often resulted in the growth of independent ecosystems in the targeted countries.
The cautious handling of AI and semiconductor issues during the Beijing summit reflects this complexity. The U.S. is wary of China's military AI ambitions while also seeking to avoid a scenario where American companies lose access to the Chinese market entirely. For companies like NVIDIA, Apple, and Tesla, China remains one of the largest markets globally. Conversely, China understands the difficulty of growing without completely excluding U.S. advanced technology and the global financial system.
Thus, the atmosphere of this summit differed markedly from past tariff conflicts. Whereas previous disputes revolved around raising tariffs and battling trade surpluses and deficits, a deeper competition over AI hegemony and leadership in future civilization has now begun. While smiles and handshakes were exchanged, a quiet war over “who will control the operating system of the AI era” is underway.
In fact, competition for AI data centers and GPU acquisition is intensifying in the U.S. Microsoft, Google, Amazon, Meta, and even Wall Street financial firms are pouring astronomical amounts into AI infrastructure investments. The U.S. continues to maintain its position as the world leader in design, software, and advanced GPU technology.
On the other hand, China is accelerating its pursuit, leveraging its vast domestic market, state-led investment, and manufacturing base. Local governments in China are investing heavily in AI industrial complexes, aggressively securing semiconductor talent and developing domestic equipment. Numerous AI startups and semiconductor companies are already clustered around Beijing, Shanghai, and Shenzhen. This competition in AI and semiconductors is not merely an industrial rivalry; it is a contest for the future of national systems and global order. In this context, tariff wars have receded into relative obscurity.
Tariffs remain important, but they are a tool of the past industrial age. The core of the AI era lies in data, computational power, and semiconductor supply chains. Ultimately, the world is transitioning from an era of “who can produce cheaper” to “who can control more computational power and algorithms.”
The global economy is likely to be significantly shaken by this shift. If the U.S. and China can maintain a certain level of cooperation and trade in AI and semiconductors, the global semiconductor market may stabilize. Conversely, if tensions escalate again, supply chain fragmentation and technological blockades will deepen, potentially dividing the world into U.S.-centric and China-centric technology spheres.
South Korea's dilemma is even more profound. While South Korea is one of the world's leading memory semiconductor powers, it is also required to maintain a strategic balance between the U.S. security alliance and the Chinese market. Samsung Electronics and SK Hynix must adhere to U.S. advanced semiconductor regulations while also not abandoning their production bases and markets in China.
Ultimately, South Korea must rise to become a key technology nation in the AI era, not merely a production base. It needs to expand its competitiveness beyond memory-centric structures to include AI semiconductor design, software, power semiconductors, and advanced packaging. At the same time, a strategic diplomatic sense that avoids being swept away by either the U.S. or China is essential.
The 2026 Beijing summit clearly illustrated this shift. The center of global hegemony is now moving from tariffs to AI and semiconductors. And this quiet war has already begun.
※ This article was generated using generative AI and has been reviewed by an editor.
The summit between U.S. President Donald Trump and Chinese President Xi Jinping outwardly conveyed messages of stability and cooperation. However, the real focus of the talks was not tariffs but rather artificial intelligence (AI) and semiconductors. The global power dynamic has shifted from oil, steel, and automobiles to data, computational power, and advanced semiconductors.
A notable moment during the Beijing visit was the presence of Jensen Huang, CEO of NVIDIA. After concluding his schedule in Alaska, President Trump effectively brought Huang directly to Beijing. This was not merely the attendance of a business leader; it symbolized the U.S. beginning to manage AI semiconductors as a strategic national asset.
At one time, the U.S.-China conflict was centered around a tariff war. High tariffs imposed during Trump’s first term shook both Chinese manufacturing and the U.S. consumer market. The U.S. cited the need to address trade deficits and China's unfair trade practices, while China retaliated with its own tariffs. The world became accustomed to the term 'tariff war.'
However, in just a few years, global attention has shifted dramatically. The focus is no longer on “who can sell cheaper goods” but rather “who can design the future civilization.” At the heart of this competition are AI and semiconductors.
Semiconductors are no longer just electronic components; in the AI era, they represent national power. A country's military strength, financial systems, cloud industries, autonomous vehicles, robotics, aerospace, and biotechnology all rely on high-performance semiconductors. Notably, NVIDIA's GPUs are now referred to as the 'oil of the AI era.'
The U.S. is exerting its strongest pressure on China in the field of advanced AI semiconductors. It has restricted exports of high-end AI chips like the H100 and H200 and has tightened controls on advanced semiconductor equipment and software. Companies like ASML from the Netherlands and Japanese semiconductor equipment firms have also partially aligned with U.S. strategies, putting significant pressure on China’s access to advanced processes.
However, China has not easily retreated. Instead, it has elevated semiconductor self-sufficiency to a national survival strategy in response to U.S. pressure. Development of AI chips led by Huawei, the establishment of a domestic GPU ecosystem, memory independence, and the cultivation of Chinese semiconductor equipment are all progressing simultaneously. The recent rise of Chinese AI company DeepMind has also sent shockwaves through the global industry.
DeepMind has achieved significant AI performance through its own optimization technology and efficient computational structure, even with limited access to advanced U.S. chips. This challenges the assumption that “Chinese AI cannot grow without American chips.”
This situation deepens the dilemma for the U.S. While excessive pressure on China may yield short-term advantages for the U.S., it risks accelerating China’s self-sufficiency in the long run. Historically, technology embargoes have often resulted in the growth of independent ecosystems in the targeted countries.
The cautious handling of AI and semiconductor issues during the Beijing summit reflects this complexity. The U.S. is wary of China's military AI ambitions while also seeking to avoid a scenario where American companies lose access to the Chinese market entirely. For companies like NVIDIA, Apple, and Tesla, China remains one of the largest markets globally. Conversely, China understands the difficulty of growing without completely excluding U.S. advanced technology and the global financial system.
Thus, the atmosphere of this summit differed markedly from past tariff conflicts. Whereas previous disputes revolved around raising tariffs and battling trade surpluses and deficits, a deeper competition over AI hegemony and leadership in future civilization has now begun. While smiles and handshakes were exchanged, a quiet war over “who will control the operating system of the AI era” is underway.
In fact, competition for AI data centers and GPU acquisition is intensifying in the U.S. Microsoft, Google, Amazon, Meta, and even Wall Street financial firms are pouring astronomical amounts into AI infrastructure investments. The U.S. continues to maintain its position as the world leader in design, software, and advanced GPU technology.
On the other hand, China is accelerating its pursuit, leveraging its vast domestic market, state-led investment, and manufacturing base. Local governments in China are investing heavily in AI industrial complexes, aggressively securing semiconductor talent and developing domestic equipment. Numerous AI startups and semiconductor companies are already clustered around Beijing, Shanghai, and Shenzhen. This competition in AI and semiconductors is not merely an industrial rivalry; it is a contest for the future of national systems and global order. In this context, tariff wars have receded into relative obscurity.
Tariffs remain important, but they are a tool of the past industrial age. The core of the AI era lies in data, computational power, and semiconductor supply chains. Ultimately, the world is transitioning from an era of “who can produce cheaper” to “who can control more computational power and algorithms.”
The global economy is likely to be significantly shaken by this shift. If the U.S. and China can maintain a certain level of cooperation and trade in AI and semiconductors, the global semiconductor market may stabilize. Conversely, if tensions escalate again, supply chain fragmentation and technological blockades will deepen, potentially dividing the world into U.S.-centric and China-centric technology spheres.
South Korea's dilemma is even more profound. While South Korea is one of the world's leading memory semiconductor powers, it is also required to maintain a strategic balance between the U.S. security alliance and the Chinese market. Samsung Electronics and SK Hynix must adhere to U.S. advanced semiconductor regulations while also not abandoning their production bases and markets in China.
Ultimately, South Korea must rise to become a key technology nation in the AI era, not merely a production base. It needs to expand its competitiveness beyond memory-centric structures to include AI semiconductor design, software, power semiconductors, and advanced packaging. At the same time, a strategic diplomatic sense that avoids being swept away by either the U.S. or China is essential.
The 2026 Beijing summit clearly illustrated this shift. The center of global hegemony is now moving from tariffs to AI and semiconductors. And this quiet war has already begun.
※ This article was generated using generative AI and has been reviewed by an editor.
* This article has been translated by AI.
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