Apple’s new chief, John Ternus, faces a China that remains both its largest market and manufacturing hub. iPhone sales have rebounded, yet the company struggles to pivot its supply chain away from Beijing. Ternus will also confront a global memory‑chip crunch, unclear AI strategy and escalating U.S.–China tensions.

The White House has warned that Chinese entities are conducting industrial‑scale distillation of U.S. AI models. A memo from Michael Kratsios, director of the Office of Science and Technology Policy, outlined plans to share intelligence with U.S. firms and coordinate countermeasures. Beijing calls the claims “pure slander.”

Meta’s acquisition of Chinese AI start‑up Manus was halted by Beijing, tightening export controls on AI‑related tech. The blockade, imposed four months after the deal closed, signals a clampdown on cross‑border data flows and may deter future U.S. investments in Chinese AI talent. The move follows a broader U.S. push to curb technology transfer.

Phison Electronics’ CEO K.S. Pua said the U.S. AI infrastructure build‑out is fueling a persistent memory‑chip shortage that will persist for years. As cloud providers demand vast storage for inference services, demand for NAND flash controllers remains high. Investors should watch how supply constraints shape pricing and supply chain strategies.