China Recalibrates Tech Leverage as SoftBank Bets $22.5B on AI Future

China's recent decision to suspend a ban on exports of dual-use materials to the U.S. has drawn scrutiny amid broader tensions over trade and technology, according to a Reuters report. The Ministry of Commerce announced that restrictions on gallium, germanium, antimony, and superhard materials—key components in semiconductor manufacturing—will remain lifted until November 2026, the Reuters report notes. This move follows a December 2024 policy that initially imposed the restrictions to protect national security, but the temporary reversal suggests Beijing is recalibrating its leverage in the high-tech rivalry, Reuters notes.

Meanwhile, geopolitical and economic shifts continue to shape cross-border relations. China Eastern Airlines resumed direct flights between Shanghai and Delhi with 95% occupancy, marking the first such service by a mainland Chinese carrier in 2025, according to a Business Standard report. The route, a vital link between two major economies, is expected to bolster trade and cultural exchanges as bilateral ties improve post-pandemic. India's IndiGo also plans to launch daily flights to Guangzhou, signaling a thaw in relations that hit a low after the 2020 Galwan Valley clashes, the report says.

In the tech sector, SoftBank Group's aggressive reallocation of capital has sent ripples through global markets. The Japanese conglomerate sold its entire $5.83 billion stake in Nvidia, triggering a 10% stock price drop, a GuruFocus report notes. The proceeds will fund a $22.5 billion investment in OpenAI and acquisitions like Ampere Computing and ABB's robotics division, the CNBC report adds. While some analysts view the move as a strategic pivot toward artificial intelligence, others question the financial risks of such a concentrated bet, the report notes. SoftBank's Vision Fund, which has historically backed disruptive technologies, now faces scrutiny over its ability to replicate past successes in an increasingly competitive AI landscape, according to a Financial Content article.

The AI sector itself is undergoing a significant shift. Meta's chief AI scientist, Yann LeCun, is set to depart and launch a startup focused on "world models"—systems designed to simulate and understand the physical world, a Nasdaq report notes. His exit underscores a philosophical divide within Meta, where CEO Mark Zuckerberg has prioritized commercialization of large language models over long-term research. LeCun's new venture, which seeks to raise funds for projects outside the LLM paradigm, aligns with a broader industry debate over the future of AI development, the Unite article notes.

As global tech giants and governments navigate these transformations, the interplay between trade policies, capital flows, and innovation strategies will likely define the next phase of economic competition. China's dual-use export policy, SoftBank's AI investments, and the evolution of AI research all highlight the complex forces reshaping the technology landscape in 2025.