From TikTok to Nvidia, the US-China tech war is getting uglier

The tech conflict between China and the United States is reaching a boiling point. This is leaving Bytedance with fewer and fewer choices for TikTok in the US.

The new reality, where more firms will be squeezed from both sides, is laid clear by mutual distrust and tit-for-tat hatred.

As part of an investigation into a deal that Beijing authorised many years ago, Nvidia is now the focus of China's authorities. Washington strengthened chip sanctions on China this week.

In response, Beijing stopped exports of certain minerals with tech uses to the US. This latest measure against Nvidia follows previous recent escalations.

A key component of Ukraine's defence, drones are also being shut off from the US and Europe by China.

Last week, a federal appeals court in the United States upheld a statute that would have banned TikTok unless the company divested itself from its Chinese parent, Bytedance.

That shows how supply chains are still linked. This makes Nvidia an intriguing new target for Beijing.

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According to reports, Bytedance is apparently putting all of its eggs in the AI basket to find a growth engine to replace TikTok. This comes as Bytedance becomes Nvidia's biggest customer in China.

To be relevant, Bytedance has expanded its focus beyond its short-form video platform. Now that the us drama has continued for years, the Chinese firm is in a hopeless situation.

Tech businesses with global ambitions will likely have to choose sides and stay in their lane now that the pandora's box is opened. The latest conflict sends a scary message to not become too big in the US.

This comes at a time when other Chinese tech companies are seeking expansion overseas due to domestic spending cuts.

(With inputs from the agencies)