Dilok Klaisataporn
Japan reported a trade surplus of JPY 301.9 billion in April 2026, compared to a deficit of JPY 149.5 billion in April 2025, significantly exceeding expectations for a JPY 29.7 billion deficit.
This surplus is the largest since November, with exports
The latest developments surrounding Nvidia’s H200 chip sales to China highlight the growing complexity of the technological rivalry between the United States and China. Although Washington has reportedly approved several major Chinese firms to purchase Nvidia’s advanced artificial intelligence chips, no deliveries have taken place so far.
The situation reflects how geopolitical competition is increasingly disrupting even officially approved commercial agreements in the semiconductor sector.
Nvidia, the world’s leading artificial intelligence chip manufacturer, now finds itself caught between United States export control policies and China’s push for technological self reliance.
The H200 is Nvidia’s second most powerful artificial intelligence chip and is designed for advanced AI model training and data center operations.
The chip is particularly valuable for companies developing large language models, cloud computing systems, and next generation AI applications.
Before export restrictions tightened, Nvidia dominated China’s advanced AI chip market with an estimated market share of around 95 percent.
China also represented a major source of revenue for Nvidia, making access to the Chinese market strategically important for the company’s long term growth.
According to reports, the United States Commerce Department approved around ten Chinese firms to purchase H200 chips.
These reportedly include major Chinese technology companies such as:
Several distributors were also reportedly approved, including:
Under the licensing terms, each approved customer could reportedly purchase up to 75,000 chips.
However, despite these approvals, no actual sales or deliveries have yet been completed.
The delays appear to stem from concerns on both the United States and Chinese sides.
Chinese authorities reportedly fear that reliance on Nvidia chips could undermine Beijing’s efforts to strengthen its domestic semiconductor industry.
China has invested heavily in local AI chip development, particularly through companies such as Huawei.
Beijing increasingly sees semiconductor self sufficiency as a national security priority amid escalating technological competition with Washington.
There are also concerns within China regarding supply chain security and possible vulnerabilities linked to imported American technology.
Recent Chinese regulations aimed at reducing foreign dependence in critical technology sectors have reportedly intensified scrutiny of these chip purchases.
The United States has simultaneously imposed strict export control requirements on advanced semiconductor sales to China.
Chinese buyers must reportedly prove that the chips will not be used for military purposes and that adequate security procedures are in place.
Nvidia must also satisfy inventory and compliance conditions under American export laws.
Additionally, reports suggest the Trump administration negotiated an unusual arrangement in which the United States would receive a portion of revenue generated from the chip sales. This reportedly requires the chips to pass through American territory before shipment to China.
Such conditions have further complicated the transaction process.
Nvidia Chief Executive Officer Jensen Huang has emerged as a key figure in efforts to preserve Nvidia’s access to the Chinese market.
Huang reportedly joined President Donald Trump during a diplomatic visit linked to talks with Chinese President Xi Jinping.
His participation underscores the economic significance of the semiconductor dispute and the importance of China to Nvidia’s business strategy.
Huang has repeatedly warned that export controls risk permanently weakening Nvidia’s position in China while encouraging Chinese firms to accelerate domestic alternatives.
The Nvidia dispute reflects a broader struggle between the United States and China over technological dominance in artificial intelligence.
Washington increasingly views advanced semiconductor technology as a strategic national security asset. American policymakers fear that unrestricted access to advanced AI chips could strengthen China’s military and technological capabilities.
China, meanwhile, sees semiconductor independence as essential to reducing vulnerability to foreign pressure and sanctions.
As a result, both sides are attempting to balance economic interests with long term strategic competition.
The uncertainty surrounding Nvidia’s China business could have major implications for the global artificial intelligence industry.
If Chinese companies lose access to Nvidia chips, they may accelerate investment in domestic alternatives, potentially reshaping the global semiconductor market over time.
At the same time, restrictions on AI chip trade risk fragmenting the global technology ecosystem into competing American and Chinese spheres.
This could reduce international collaboration, disrupt supply chains, and intensify geopolitical competition over emerging technologies.
Despite current delays, neither the United States nor China appears willing to completely sever technological and commercial ties.
However, the Nvidia case demonstrates that semiconductor trade between the two powers is becoming increasingly politicized and strategically sensitive.
The future of AI competition may ultimately depend not only on innovation, but also on which country can build the most resilient and independent technology ecosystem.
For Nvidia, maintaining its position between the world’s two largest economies will likely remain one of its greatest strategic challenges.
The stalled Nvidia H200 deal illustrates how deeply geopolitical tensions now shape the global technology industry.
Although the United States has approved limited chip exports to China, political distrust, national security concerns, and strategic competition continue to obstruct implementation.
As artificial intelligence becomes central to economic and military power, semiconductor trade is no longer simply a commercial issue. It has become a defining arena in the broader contest between Washington and Beijing for technological leadership in the twenty first century.
With information from Reuters,
Containers for export are stacked at a port in Pyeongtaek, around sixty kilometers south of Seoul, South Korea, 22 February 2026. Photo by YONHAP /EPA
May 1 (Asia Today) — South Korea’s exports rose 48% from a year earlier in April, staying above $80 billion for the second consecutive month, government data showed Friday.
Exports totaled $85.89 billion, the second-highest monthly figure on record after $86.6 billion in March, according to the Ministry of Trade, Industry and Energy.
The increase was driven by strong semiconductor shipments, which surged 173.5% to $31.9 billion on rising demand tied to artificial intelligence. Chip exports exceeded $30 billion for the second straight month and set an April record.
Daily average exports, adjusted for working days, rose 48% to $3.58 billion, staying above $3 billion for a third consecutive month.
Auto exports fell 5.5% to $6.17 billion due to logistics disruptions from the Middle East, U.S. tariff effects and expanded overseas production. Exports of electric and hybrid vehicles continued to grow.
Petroleum product exports rose 39.9% to $5.11 billion by value due to higher oil prices, though shipment volume dropped 36% because of export controls on gasoline, diesel and kerosene.
Petrochemical exports increased 7.8% to $4.09 billion, while shipment volume fell 20.9% as companies expanded domestic supply.
Computer exports jumped 515.8% to $4.08 billion, and wireless communication device exports rose 11.6% to $1.62 billion.
By destination, exports to China rose 62.5% to $17.7 billion, marking six straight months of gains. Shipments to the United States increased 54% to $16.33 billion, while exports to the Association of Southeast Asian Nations rose 64% to $15.41 billion.
Exports to the European Union increased 8.5% to $7.19 billion. Shipments to the Middle East fell 25.1% to $1.27 billion due to logistics disruptions.
Imports rose 16.7% to $62.11 billion. Energy imports increased 7.5% to $10.61 billion, while non-energy imports rose 18.8% to $51.51 billion.
South Korea posted a trade surplus of $23.77 billion in April, extending its surplus streak to 15 months.
— Reported by Asia Today; translated by UPI
© Asia Today. Unauthorized reproduction or redistribution prohibited.
Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260501010000017
Japan could soon sell weapons overseas, including fighter jets, in major shift from pacifist policies introduced after World War II.
Published On 21 Apr 202621 Apr 2026
The cabinet of Japanese Prime Minister Sanae Takaichi has lifted a ban on exporting lethal weapons, including fighter jets, in a major shift to Japan’s pacifist post-World War II constitution.
In a post on X announcing the changes on Tuesday, Takaichi did not specify which weapons Japan would now sell overseas. However, Japanese newspapers said the changes would encompass fighter jets, missiles and warships, which Japan has recently agreed to build for Australia.
list of 4 itemsend of list
“With this amendment, transfers of all defence equipment will in principle become possible,” Takaichi said, adding that “recipients will be limited to countries that commit to use in accordance with the UN Charter”.
“In an increasingly severe security environment, no single country can now protect its own peace and security alone.”
At least 17 countries will be eligible to buy weapons manufactured in Japan under the changes, Japan’s Chunichi newspaper reported, adding that this list may be expanded if more countries enter into bilateral agreements with Japan.
Previous rules, introduced in 1967 and enacted in 1976, had limited Japanese military exports to non-lethal arms, such as those used for surveillance and mine sweeping, Japan’s Asahi newspaper reported.
Asahi also reported that Japan will still restrict exporting weapons to countries where fighting is currently taking place, but exemptions are allowed under “special circumstances” where Japan’s national security needs are taken into account.
Countries interested in buying Japanese-made weapons include Australia, New Zealand, the Philippines and Indonesia, which recently signed a major defence pact with the United States, Chunichi reported, citing Japan’s Ministry of Defence.
Tokyo’s change in policy comes soon after Japan and Australia signed a $7bn deal that will see Japan’s Mitsubishi Heavy Industries build the first three of 11 warships for the Australian navy.
The changes announced by Takaichi on Tuesday come amid reports that the Japanese prime minister had sent a ritual offering to the notorious Yasukuni Shrine in Tokyo on the occasion of its spring festival.
Built in the 1800s to honour Japan’s war dead, the shrine includes the names of more than 1,000 convicted Japanese war criminals from World War II, including 14 who were found guilty of “Class A” crimes.
Visits by Japanese officials to the shrine have long been considered insensitive to the people of China, South Korea, and other countries that Japanese soldiers brutalised during the war.
After the defeat of Axis countries, including the bombing of Japan’s Hiroshima and Nagasaki at the end of World War II, Japan introduced a new constitution renouncing participation in war.
However, Takaichi, considered a China “hawk” and sometimes referred to as Japan’s “Iron Lady”, is among a number of recent Japanese leaders to have pushed back against the country’s pacifist stance.
An F-2 fighter jet flies during a live fire exercise conducted by the Japan Ground Self-Defense Force (JGSDF) at East Fuji Maneuver Area in Gotemba, Shizuoka, Japan. Photo by Tomohiro Ohsumi / EPA
April 17 (Asia Today) — Japan is moving to strengthen a government-wide system to boost defense exports, including creating a centralized control structure and easing restrictions on what military equipment can be sold overseas, according to media reports.
The government plans to establish a director-general-level coordination body involving key ministries to oversee arms export policy and execution, the Asahi Shimbun reported Thursday.
Tokyo is also considering revising guidelines tied to its Three Principles on Defense Equipment Transfers to remove restrictions on five categories – rescue, transport, patrol, surveillance and mine countermeasures – that have limited exports so far.
According to Reuters, the government could move as early as this month to revise the guidelines, with the ruling Liberal Democratic Party already approving the direction at a party meeting Sunday.
The policy shift reflects a broader strategy with two main goals: expanding the range of weapons Japan can export and overhauling how those exports are managed.
Japan has effectively limited defense exports to non-lethal equipment in the past but is now moving to include systems with lethal capabilities. At the same time, the new coordination body would bring together the foreign, defense and industry ministries, along with private companies, to align export approvals, regulatory changes and sales support.
Prime Minister Sanae Takaichi said in parliament that easing arms export restrictions would contribute to economic growth, signaling a shift toward treating defense exports as part of industrial policy rather than solely a security measure.
Japanese officials have argued that expanding exports is necessary to sustain the domestic defense industry, maintain production capacity and secure supply chains that are difficult to support through domestic demand alone.
Analysts say the move goes beyond regulatory changes and represents a broader effort to build a national system designed to facilitate arms sales.
If implemented, the revisions would significantly lower barriers to exporting finished weapons, marking a major shift from Japan’s traditionally restrictive defense export framework.
— Reported by Asia Today; translated by UPI
© Asia Today. Unauthorized reproduction or redistribution prohibited.
Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260417010005454