WSJ What’s News – PM Edition

Episode: Trump Goes After China’s Tech Sector by Expanding Trade Blacklist
Date: September 29, 2025
Host: Alex Osola

Episode Overview

This episode covers President Trump’s latest multi-pronged policy actions: a new peace proposal to end the Gaza war, looming government shutdown negotiations, turmoil in US credit markets, the historic buyout deal of Electronic Arts, and—most notably—the White House’s move to clamp down on China’s tech sector. The main business focus is the expansion of the US trade ‘entity list’ to bar thousands of Chinese-affiliated companies—including their subsidiaries—from doing business with American firms, with significant implications for critical supply chains.

Key Discussion Points & Insights

1. Trump’s 20-Point Peace Plan for Gaza

• The White House unveiled a comprehensive proposal to end the nearly two-year Gaza war, demanding Hamas release all hostages within 72 hours.
• The proposal leaves open the possibility of Palestinian statehood and promises US-guided economic redevelopment for Gaza.
• Notable Quote:
  • “If Hamas rejects the deal, which is always possible, they're the only one left... Everyone else has accepted it, but I have a feeling that we're going to have a positive answer. But if not, as you know, Bibi, you’d have more full backing to do what you would have to do.” – President Trump, addressing Israeli PM Netanyahu. [01:11–01:29]

2. Government Shutdown Looms

• Congressional leaders rushed to negotiate ahead of a deadline, with a shutdown set to occur if no deal is reached by 12:01am, October 1.
• Political gridlock continues: Republicans resist compromise, Democrats blame Republicans for last-minute negotiations.
• Market Response: Fears weighed on the dollar and Treasury yields; gold hit a record.

3. US Credit Markets—Risk of Reckoning

• Credit conditions are loose; corporate debt is popular but potentially overextended.
• Private credit sees significant growth, but default rates are ticking up.
• Expert Insight:
  • “Investors are a little bit worried that we're getting to the later innings... the more credit grows, the more debt is borrowed, then the more violent that correction is likely to be.” – Matt Wirtz, WSJ Credit Reporter [03:28–04:56]
• High interest rates (4–5%) attract buyers, but memories of 2008 linger.

4. Record Buyout: Electronic Arts Goes Private

• EA to go private in a $55 billion deal led by Saudi Arabia’s Public Investment Fund, Silverlake, and Jared Kushner's Affinity Partners—making it the largest leveraged buyout ever.
• JPMorgan Chase to provide $20 billion in financing.
• EA shareholders to receive a 25% premium.

5. Fraud Conviction: Charli Javice

• Startup founder sentenced to more than 7 years for defrauding JPMorgan Chase by faking user numbers in her $175M company sale.
• Quote:
  • “She acknowledged that she, quote, made mistakes.” [05:37]

Main Focus: Crackdown on China’s Tech Sector via Trade Blacklist Expansion

Background and Mechanics

• The Trump administration expands the Commerce Department’s ‘entity list’ to automatically include subsidiaries of blacklisted companies, not just the parent firms.
• Aims to block Chinese and Russian companies from circumventing US technology export restrictions through subsidiaries.

Key Insights from WSJ Tech Policy Reporter Amrith Ramkumar [08:17–10:30]

• Goal: Prevent US technology from reaching China/Russia through loopholes.

  • “US Companies need special licenses... clever companies would create a subsidiary still owned by the parent company to get around those restrictions. They're trying to shut that loophole off, and it's very significant.” [08:17]

• Scope and Impact:

  • Thousands of additional companies—especially Chinese firms embedded in semiconductor, pharmaceutical, and other key US supply chains—will now fall under restriction.
  • US companies face major compliance burdens.
  • “Very few companies have a fully domestic supply chain... Chinese companies and subsidiaries are ingrained in a lot of these key areas...” [08:52]

• Compliance Process:

  • Not a full ban, but stringent: US companies must apply for licenses—approval is slow and uncertain.
  • A short 60-day grace period will allow some general licenses, followed by stricter scrutiny.
  • “This administration has been pretty tight with how they approve licenses. That can take a long time and require a lot of work.” [09:26]

• Implications for US-China Trade Talks:

  • Likely to escalate trade tensions, provoking possible retaliation from China.
  • “China has put US Companies on its versions of some more or less. They've also gone after companies like Nvidia.” [10:07]

Notable Quotes from the Segment

• “This is potentially going to add thousands of companies to the entity list and a lot of them are in China and in critical supply chains used by US Companies.” – Amrith Ramkumar [00:12, repeated at 08:17]
• “You would imagine that this will figure into trade talks somehow and that China might think about some retaliation.” – Amrith Ramkumar [10:07]

Seattle in Transition: After the Tech Boom

• The tech layoffs in Seattle have changed the local job market, with professionals from companies like Microsoft applying for service industry jobs.
• “It's a place that's in a really interesting transition as tech jobs go away, grappling with what that means and how that can move forward...” – Sebastian Herrera, WSJ Tech Reporter [11:02–11:38]
• Despite anxiety among tech workers, Seattle retains economic diversity and remains resilient.

Timestamps for Important Segments

• Gaza Peace Plan: 00:03–01:29
• Shutdown & Markets: 01:29–03:28
• US Credit Markets: 03:28–05:11
• EA Buyout & Fraud Case: 05:11–08:17
• China Trade Blacklist Expansion: 08:17–10:30
• Seattle’s Tech Transition: 10:35–11:38

Summary:
This episode delivers broad, timely coverage of major policy moves with focus on Trump’s aggressive clampdown on China’s tech sector blacklisting—a move poised to disrupt global supply chains and further escalate trade tensions. Reporting features direct, expert insight into policy intent, implementation, and likely fallout for US and Chinese companies, with memorable on-the-ground anecdotes rounding out national economic shifts.