A report this week that China has begun mass-producing specialty chips key to the AI boom set off a selloff that erased $1 trillion in market value from other chip manufacturers, according to the Guardian. The same week, the Federal Communications Commission banned humanoid robots from China, alleging they could steal data or surveil US citizens. The bigger split is over free, open-weight Chinese AI models such as Moonshot AI's Kimi K3, powerful enough to stand in for expensive products from OpenAI and Anthropic. Microsoft, Nvidia, Palantir and Meta signed a letter urging lawmakers not to restrict open models; OpenAI and Anthropic call the Chinese models a security risk. Treasury secretary Scott Bessent has suggested sanctioning Chinese AI firms over alleged intellectual property theft, while commerce secretary Howard Lutnick gets letters from startup founders asking him not to cut off access. "We have to be careful in both ways. We don't want to restrict them when all of a sudden we come in second to China," Trump said.