Google's China shift and the battle over AI models

Google is shifting its production of Pixel smartphones, smartwatches and wireless earbuds out of China, citing ongoing U.S.-China tensions. This follows the company's successful development of higher-end Pixel smartphones in Vietnam. The decision comes after Google's attempt to mass produce its higher-end Pixel smartphones in Vietnam, according to Nikkei Asia.

The move puts Google in the company of Samsung Electronics, which has already established a mature smartphone supply chain ecosystem in Vietnam. By moving its production outside of China, Google aims to expand its market share despite the soaring prices of memory chips due to a supply crunch.

Meanwhile, Nvidia's H200 chips have been granted limited access to mainland China amid Beijing's efforts to support its leading AI companies in the race to catch up with U.S. rivals. ByteDance and Tencent have received around 10,000 H200 processors each, while other Chinese tech groups could soon obtain similar shipments. However, Chinese regulators have instructed companies to keep most of these chips outside the mainland for domestic chipmakers' benefit.

Open-weight AI has become a focal point in the ongoing U.S.-China tech war. DeepSeek's release of its open-weight AI model, V4 Pro, has sparked heated debate in Washington over whether and how to restrict Chinese models, despite Silicon Valley's pushback.