The US is losing the chip war to China as cheap Chinese energy and Huawei's breakthroughs leave Nvidia conceding the market — bad news for US tech dominance, Germany's industry, and American consumers facing sticky inflation.

• China banned Nvidia's RTX gaming chips during Trump's summit visit, and Nvidia has essentially handed the China market to Huawei.
• China's electricity prices keep falling while US power costs jumped 6% in April, giving Chinese AI factories a widening cost advantage.
• Huawei announced 1.4 nanometer chips using "logic folding" tech that bypasses the ASML machines the US blocked China from getting, with first results expected this September.
• Germany is sliding into recession as the Iran war keeps energy prices high, while the EU just blocked Chinese solar tech, making the crisis worse.
• US consumer confidence hit its lowest point since 2022, with prices running 11% above the Fed's target and no clean exit for the new Fed chair.

Outlook: Inflation, high energy costs, and China's industrial momentum will keep squeezing the US and Europe, while Huawei closes the gap on Nvidia faster than expected.