Exclusive-Chinese Firms Still Want Nvidia Chips Despite Government Pressure Not To Buy, Sources Say

Samantha Luan

Economic

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Summary:

Alibaba, ByteDance and other Chinese tech firms remain keen on Nvidia's artificial intelligence chips despite regulators in Beijing strongly discouraging them from such purchases, four people with knowledge of procurement discussions said.They want reassurance that their orders of Nvidia's H20 model, which the U.S. firm in July regained permission to sell in China, are being processed, and are closely monitoring Nvidia's plans for a more powerful chip, tentatively named the B30A and which is based on its Blackwell architecture, two of the people said.

The B30A - if approved for sale by Washington - is likely to cost about double the H20, which currently sells for between $10,000 and $12,000, those two people said.Chinese tech firms perceive the potential B30A pricing, reported by Reuters for the first time, as a good deal, they added. One said the B30A promises to be up to six times more powerful than the H20.Both chips are downgraded versions of models sold outside China, developed specifically to comply with U.S. export restrictions.All sources for this article were not authorised to speak to media and declined to be identified.The extent to which China, which generated 13% of Nvidia's revenue in the past financial year, can have access to cutting-edge AI chips is one of the biggest flashpoints in the U.S.-Sino war for tech supremacy.

On one hand, the U.S. has retreated from its previous position of more severe restrictions on Nvidia sales of advanced chips to China. Nvidia and other critics of the controls say it is better if Chinese firms continue to use its chips - which work with Nvidia's software tools - so that developers do not completely switch over to offerings from rivals like Huawei.U.S. President Donald Trump has also struck a deal with Nvidia for it to give the U.S. government 15% of its H20 revenue.At the same time, China is keen for its tech industry to wean itself off U.S. chips. Chinese authorities have summoned companies, including Tencent and ByteDance, over their purchases of the H20, asking them to explain their reasons and expressing concerns over information risks, sources said last month.

They have, however, not been ordered to cease purchases of Nvidia products.

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Despite that pressure, demand for Nvidia chips remains strong in China due to constrained supplies of products from domestic rivals such as Huawei and Cambricon, the four sources said.Another three sources who are involved in engineering operations at Chinese tech firms also said Nvidia's chips perform better than domestic products.

Source: Yahoo Finance

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Economic

JPMorgan’s Bold Move into Germany’s Banking Market

JPMorganChase, one of the largest financial institutions in the U.S., is set to launch its digital retail bank, Chase, in Germany in the second quarter of 2026. This marks a significant expansion into Europe’s largest economy, following the bank’s entry into the UK retail banking market in 2021. The move reflects JPMorgan’s broader strategy to tap into Germany's affluent customer base and its dynamic fintech ecosystem.

Germany, known for its highly regulated banking sector and competitive retail market, presents a challenge for new entrants. The country’s banking landscape is fragmented, with many players already dominating the market. However, JPMorgan's digital-first approach may offer an edge, as the bank focuses on efficiency and customer convenience in a market that is already home to other digital-first competitors like ING and N26.

A Competitive and Fragmented Market

While JPMorgan sees Germany’s stable regulatory environment and large consumer base as major advantages, the country’s retail banking sector is already crowded. Local banks, such as Deutsche Bank, have faced profitability challenges and are restructuring by cutting costs, including reducing staff and closing branches. International digital banks, such as Banco Bilbao Vizcaya Argentaria (BBVA) and ING, have already established a strong presence in the country.

Despite these challenges, JPMorgan is confident in the digital era’s ability to reshape the retail banking landscape. The Chase digital bank will initially offer savings accounts, with plans to expand its product offerings over time. This phased approach will allow JPMorgan to test its services and adapt to customer needs in the competitive German market.

Strategic Expansion and Future Plans

JPMorgan’s decision to launch Chase in Germany is part of a broader strategy to grow its European presence. The bank’s long history in Germany, having served clients for over a century, gives it a strong foundation to build upon. With a growing focus on digital services, JPMorgan aims to capture market share by offering innovative and customer-centric banking solutions.

Jamie Dimon, JPMorgan’s CEO, has acknowledged the challenges that banks face when expanding into retail banking outside of their home markets. However, with the rise of digital banking, JPMorgan sees an opportunity to break through the barriers that have previously hindered success in international retail banking.

JPMorganChase’s decision to launch a digital retail bank in Germany marks a bold move into a competitive and fragmented market. While challenges remain, particularly in attracting customers away from established players, the bank’s digital-first approach and its strong customer base in Germany could allow it to carve out a profitable niche in the country’s evolving banking landscape.

Source: Reuters

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Economic

The Shift from Cheap Labor to Smart Technologies

Vietnam’s appeal as a destination for Foreign Direct Investment (FDI) has traditionally been built on low labor costs and favorable tax incentives. However, a new trend is emerging, with foreign investors now focusing more on technological collaboration, sustainability, and local innovation. According to Lê Anh Dũng, General Director of the International Investment Research Institute (ISC), foreign investors are increasingly looking for smart technology partners rather than just cheap labor.

This shift is a response to global economic changes, including the push for sustainable development and the need to meet the high standards of the world’s leading economies. As such, companies are moving away from labor-intensive production models and towards smarter, automated manufacturing processes. The goal is to align with Vietnam’s 2030 Digital Hub plan, which aims to transform the country into a key regional technology center.

For instance, a South Korean technology conglomerate initially interested in Vietnam for its cheap electricity and land costs decided to scale up its investment after learning about Vietnam's vision to become a regional digital hub, thereby increasing its planned investment from $500 million to $1.2 billion.

The Emergence of High-Tech and Green FDI

FDI in high-tech and green industries is also on the rise. Vietnam has seen large investments in the semiconductor sector, with companies like Samsung and LG Display investing billions of dollars in local production facilities. The semiconductor industry is especially crucial for Vietnam as it competes to be a global hub for electronic manufacturing and high-tech supply chains.

Moreover, foreign investments are increasingly directed towards sustainable projects, with many European firms showing strong interest in Vietnam’s renewable energy sector. Notably, Copenhagen Infrastructure Partners (CIP) plans to invest $110 billion in renewable energy projects in Vietnam by 2030, with the first large-scale offshore wind farm already in development in Bình Thuận.

FDI Growth and New Opportunities

Vietnam’s FDI strategy has been successful, with a growing number of tech giants like NVIDIA, Qualcomm, and Intel committing to investing in the country. These investments are boosting Vietnam's position as a key player in the global tech supply chain, especially as the demand for clean energy, AI, and smart technologies continues to rise.

In 2024, the country attracted numerous high-value FDI projects, particularly in the semiconductor and high-tech industries. For example, LG Display increased its investment by $1 billion, and Samsung committed to an additional $1.8 billion in its display factory in Bắc Ninh.

Challenges and Opportunities Ahead

Despite the promising trends, there are challenges ahead, particularly in terms of human capital and infrastructure. Vietnam’s rapid industrialization and tech-driven growth require a highly skilled workforce, which is currently in short supply. Additionally, the country’s infrastructure, particularly in logistics and digital infrastructure, needs further development to meet the demands of these growing sectors.

Experts, including Phan Hữu Thắng, former Director of the Foreign Investment Agency, note that Vietnam's FDI landscape is changing for the better, with more advanced industries emerging. However, to maintain its competitiveness on the global stage, Vietnam must continue to improve its business environment, enhance its workforce’s skillset, and invest in infrastructure.

Vietnam is transitioning from being a low-cost labor hub to a global leader in high-tech and sustainable industries. As the country attracts major investments in sectors like semiconductors, renewable energy, and AI, it is positioning itself as an essential part of the global supply chain. However, to continue this momentum, Vietnam must address challenges in human capital and infrastructure, while further improving its competitiveness on the global stage. The future of FDI in Vietnam looks bright, as the country capitalizes on its strategic location and emerging tech industries.

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Commodity

Gold Outshines Bonds in Safe-Haven Battle

Gold has surged to new highs as global bond markets experience significant selloffs. Investors are increasingly shifting their portfolios into gold, signaling a preference for the precious metal amid growing concerns about the stability of key economies' fiscal and monetary policies. As bond yields rise in response to these concerns, gold is benefiting from its status as a traditional safe haven.

The selloff in bonds, particularly long-dated government bonds, has been driven by fears of fiscal deterioration in major economies like the U.S., Japan, and the UK. This has led to a rise in bond yields, especially in the longer-term segment. Investors are increasingly worried about the direction of fiscal policy and the sustainability of debt levels, leading them to seek alternatives such as gold.

The Role of Political Uncertainty

Political risks, particularly related to the growing influence of political figures on monetary policy, have also contributed to the shift in investor sentiment. The growing politicization of central bank decisions, especially in the U.S., where President Trump has exerted pressure on the Federal Reserve, is making bonds less attractive as an investment.

In contrast, gold has become more appealing. The precious metal has long been seen as a hedge against inflation, currency devaluation, and political instability, and it is now benefiting from these same factors. As fears mount about potential economic instability, gold's appeal has surged, and its price is climbing, attracting investor attention.

Outlook for Gold and Bonds

As the bond market continues to face pressure, and with no immediate solutions in sight for the fiscal challenges facing major economies, gold's price is expected to remain strong. If bond yields continue to rise, and if fiscal and monetary policies remain uncertain, gold could continue to see increased demand, potentially pushing its price higher.

With gold emerging victorious in the safe-haven race, investors are likely to continue seeking refuge in the metal as global economic and political uncertainty persists.

Source: CNBC

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Tech Stocks Lead U.S. Market Gains

On Wednesday, U.S. markets posted gains, driven largely by a rally in tech stocks. The Nasdaq Composite surged 1.03%, while the S&P 500 climbed 0.51%, following a favorable court ruling that allowed Google to keep its Chrome browser. However, the Dow Jones Industrial Average saw a marginal decline.

Optimism surrounding a potential rate cut from the Federal Reserve in its September meeting helped buoy market sentiment. According to the CME FedWatch tool, the likelihood of a 25 basis-point cut at the Fed's next meeting is now at 96.6%, up from 89% a week ago. Investors are anticipating that the Fed will act to support the economy amid mounting economic concerns.

Labor Market Weakness Weighs on Optimism

Despite the rally in equities, weak labor market data is causing concern. The Job Openings and Labor Turnover Survey showed that job openings fell to 7.18 million in July, the second lowest since the end of 2020. Economists are also forecasting a soft August payroll report and a slight uptick in jobless claims. The expected rise in the unemployment rate to 4.3% from 4.2% further underscores worries that the labor market may be cooling, which could dampen economic growth.

President Trump continues to push for his tariffs, requesting that the Supreme Court rule on an appeal to overturn a lower court decision that found most of his tariffs illegal. Meanwhile, the bond market remains under pressure, with yields on long-term bonds surging globally. This reflects growing investor unease over fiscal and monetary policies in major economies, particularly with rising debt levels in the U.S., Japan, and the UK.

Gold Hits Record High

Gold prices reached a fresh record high, driven by strong demand for safe-haven assets amid economic uncertainty. Spot gold extended its record run above $3,500 per ounce, continuing to attract investors seeking stability in a volatile market.

While optimism about a Fed rate cut has helped drive equity market gains, labor market concerns and bond market pressure are putting a damper on investor sentiment. The outlook remains uncertain as markets balance the potential for rate cuts against weakening economic data and ongoing geopolitical and trade risks.

Source: CNBC

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MarketPulse by OANDA Group

Forex

Economic

The USD/CHF’s sideways range environment since its 1 August 2025 swing high of 0.8170 has been getting compressed as we approach the key risk event for the FX market this week, the US non-farm payrolls and unemployment rate for August out this Friday, 5 September.

SNB rate cut cycle likely over as Swiss leading economic data improves in August

Fig. 1: Switzerland Manufacturing PMI as of Aug 2025 (Source: Trading Economics)

Fig. 2: Switzerland Services PMI as of Aug 2025 (Source: Trading Economics)

The Swiss National Bank (SNB) was the first major central bank to initiate an easing cycle in March 2024, delivering six consecutive cuts totalling 175 basis points. This brought the policy rate down from a 10-year high of 1.75% to 0% by June 2025, marking the first return to zero borrowing costs since the negative-rate era that ended in late 2022.The next SNB monetary policy meeting will be held on 29 September, and there is a likelihood that the SNB may pause its interest rate cut cycle as two leading economic data points have started to show subtle signs of demand improvement in Switzerland.

The Swiss manufacturing PMI rose slightly to 49.0 in August from 48.8 in July, while manufacturing activities remain in contraction mode (below 50), but its negative growth momentum has continued to subside from the May 2025 print of 42.1.In addition, service activities in Switzerland showed minor improvements as the services PMI increased to 43.9 in August from a five-year low of 41.80 printed in July.

Let’s now examine the medium-term outlook (1-3 weeks) on the USD/CHF from a technical analysis perspective.

Fig. 3: USD/CHF medium-term trend as of 4 Sep 2025 (Source: TradingView)
Preferred trend bias (1-3 weeks)

Potential bearish breakdown from the ongoing five-week range below 0.8100 key medium-term pivotal resistance, with downside trigger level at 0.7990 to expose the next supports at 0.7920/0.7870 and 0.7795 (see Fig. 3).

Key elements

● The recent bounces seen in the USD/CHF since 1 August 2025 have failed to surpass the upper boundary of the medium-term descending channel from the 3 February 2025 high, which suggests the lack of bullish momentum.

● The 4-hour Bollinger Bandwidth indicator has continued to hover at a relatively low level of 1, which highlights a volatility compression condition, a prelude to a volatility expansion that may trigger a potential imminent outburst in the price actions of USD/CHF.

● The yield spread (premium) between the 2-year US Treasury note and the 2-year Swiss government bond has continued to shrink to 3.70% since its bearish breakdown on 1 August 2025, where it was at 4.07% on 31 July 2025.

● Recently, on 22 August 2025, the 2-year yield spread of the US Treasury note and the Swiss government bond flashed out a similar bearish breakdown and traded below its 50-day moving average.

● These observations suggest that 2-year US Treasury notes are getting less attractive over similar tenures of Swiss government bonds in terms of yields, which in turn can put downside pressure on the USD/CHF.

Alternative trend bias (1 to 3 weeks)

A clearance above 0.8100 key resistance invalidates the bearish tone on the USD/CHF for a squeeze up towards the next medium-term resistances at 0.8170 and 0.8250.

Source: MarketPulse by OANDA Group

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Economic

Trump’s Global Tariffs Under Scrutiny: Appeal to Supreme Court

President Donald Trump has filed an appeal to the U.S. Supreme Court, requesting the court to uphold his controversial global tariffs, which are set to expire unless action is taken. This case, expected to have massive financial consequences, follows a decision by a federal appeals court that ruled Trump’s tariffs could not be imposed under a 1977 law designed for national emergencies. The Supreme Court’s involvement could affect trillions of dollars in trade, especially given the financial impact on U.S. businesses and the global economy.

The case hinges on whether the president has the legal authority to impose sweeping tariffs without explicit congressional approval. If the Supreme Court sides with the Trump administration, the current tariff structure, which includes taxes on imports from key U.S. trade partners like China, Canada, and Mexico, could remain intact, and further tariffs could be imposed more easily.

Trump’s tariffs have been central to his strategy of addressing trade imbalances and protecting U.S. industries, with a focus on imports of steel, aluminum, and automobiles. However, the legal challenge questions whether a trade deficit justifies such measures and whether the president can invoke national security powers to impose tariffs.

Potential Impact on the U.S. Economy and Global Trade

If the tariffs are upheld, the U.S. could continue to impose duties on foreign imports, potentially leading to retaliation from affected nations and disruptions in global supply chains. Economists warn that such an outcome could harm U.S. consumers and companies relying on global trade.

A defeat for Trump, on the other hand, could significantly reduce the current average U.S. tariff rate and possibly trigger the refunding of billions of dollars to affected importers. The outcome could also undermine Trump's ongoing trade negotiations with foreign countries.

With the Supreme Court likely to review the case by the end of the year, the outcome could have lasting implications on U.S. trade policy. The case has broader constitutional implications as well, testing the limits of executive power over economic and trade matters traditionally controlled by Congress. The appeal could also reshape future trade negotiations and set a precedent for how tariffs are imposed in the U.S. going forward.