Global Economic and Technological Shifts: Interest Rate Cuts in Australia and China, and Nvidia Warns of Multibillion-Dollar Losses

The global landscape is witnessing notable shifts,
combining monetary stimulus across Asia with rising concerns over declining U.S. technological dominance,
amid financial and trade pressures weighing on major markets and corporations.

Contents

Australia
China
Nvidia

Australia

Australia’s Central Bank Cuts Rates for the Second Time Amid Slowing Inflation and Global Risks
The Reserve Bank of Australia (RBA) has cut interest rates for the second time this year, in a move that aligned with market expectations amid signs of easing inflationary pressures and rising global economic risks.

At the conclusion of its two-day meeting on Tuesday, the RBA announced a 25 basis point cut in its benchmark interest rate, bringing it down to 3.85% — the lowest level since May 2023. In its statement, the bank cited declining domestic inflation risks and the Australian economy’s vulnerability to global developments.

This decision follows data showing a drop in Australia’s inflation rate to 2.4% in Q1 of the year — the lowest level in four years — further supporting the case for monetary easing.

The central bank also warned that tariffs imposed on China — Australia’s top trading partner and key resource export destination — could hinder growth in the world’s second-largest economy, placing additional pressure on Australia’s export-reliant economy.

China

Rate Cuts Boost Chinese Stocks as CATL IPO Becomes Largest Global Listing of 2025
Chinese stocks ended Tuesday’s session with broad gains, buoyed by monetary easing as the central bank cut key lending rates for the first time since last October in an effort to stimulate demand amid growing tariff-related pressures.

The CSI 300 index rose 0.55% to close at 3,898 points. The Shanghai Composite increased by 0.4% to 3,380 points, while the Shenzhen Composite added 0.85% to reach 2,009 points. In Hong Kong, the Hang Seng Index jumped 1.5% to close at 23,681 points, led by healthcare stocks which surged 2.55%.

Newly listed CATL shares in the Hong Kong Stock Exchange soared 16.45% to HK$306.2 after raising approximately $4.6 billion in an initial public offering — the largest globally since the beginning of 2025.

This rally coincided with major state-owned banks slashing deposit interest rates, a move aimed at supporting liquidity and encouraging domestic spending.

Nvidia

Nvidia CEO Warns: U.S. AI Chip Export Restrictions Threaten America’s Tech Leadership and Cost Us Billions
Nvidia CEO Jensen Huang delivered sharp criticism of the U.S. government’s export restrictions on advanced artificial intelligence chips,
warning that such policies could backfire and cause America to lose its leadership in the global tech race.

Nvidia has been directly impacted by these restrictions, having been barred from selling its advanced AI chips
— such as the H20 — to China, a strategically important market for AI products.
As a result, the company announced a write-down of $5.5 billion in inventory and forfeited nearly $15 billion in potential sales,
marking an unprecedented financial blow.

Huang stated: “No company has ever written off this much inventory. We also lost nearly $3 billion in potential tax revenue.”

He further warned that these restrictions might accelerate China’s development of domestic alternatives,
strengthening its technological independence and limiting U.S. influence in the global market.
“If we withdraw from China, we leave room for their ecosystem to grow without competition.
Their technologies will then proliferate globally,” he said.

Huang emphasized that AI is not a standalone component that can be controlled at the chip level alone.
“AI is an integrated ecosystem. Regulating only semiconductors while ignoring other layers is illogical.”

Global Economic and Technological Shifts: Interest Rate Cuts in Australia

Global Economic and Technological Shifts

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