Horizon cutting-room links: Wednesday, 13 August 2025

“Under fire, GAO explains its mission to Congress,” GovExec

Facing public criticism from the White House and Republican lawmakers, proposed budget cuts of up to 50 percent, and threats to curtail cooperation, GAO published a plain‑spoken blog post to re-explain its mandate to Congress and the public. The piece underscores that the vast majority of GAO’s work originates from bipartisan congressional mandates and requests, outlines how priorities are set, and highlights outcome metrics the watchdog says demonstrate value. The move comes after clashes over GAO legal findings, including a White House decision to cancel a $5 billion EV program, and remarks from OMB Director Russ Vought dismissing GAO probes as “non‑events.”

• Why GAO spoke up now: The blog follows sustained pressure, including a White House warning in May about reduced cooperation after GAO said canceling a $5 billion EV initiative broke the law, partisan broadsides from OMB Director Russ Vought, and a House GOP plan to cut GAO’s budget in half.
• How GAO is tasked and prioritized: About 95 percent of GAO’s work is mandated or requested by Congress, split roughly evenly between the two. GAO receives more than 600 new mandates and requests each year and uses established protocols to prioritize, with equal weight to both parties.
• Impact and stance: GAO reports program evaluations, audits, forensic investigations, technology assessments, and legal decisions, citing fiscal 2024 savings of $66.7 billion on an $811.9 million budget. The post emphasizes nonpartisanship and closes, “We can be counted on for calling it like we see it, regardless of who is asking.”

“China Creates World’s No. 1 Shipbuilder, Driven by Rivalry With U.S.,” Wall Street Journal

In a $16 billion consolidation, China State Shipbuilding Corporation will absorb China Shipbuilding Industry to form the world’s largest shipbuilder, bolstering Beijing’s commercial scale and military-civil fusion as Washington seeks to revive US shipyards. The merged giant inherits more than 530 vessels and 54 million deadweight tons on order and roughly $18 billion in annual revenue, positioning it to cut costs, stabilize amid tariff turbulence, and support the Chinese navy’s modernization, including carriers like the Shandong. Emerging headwinds loom: US proposals for port fees on China-built ships, global order weakness, and rival efforts in Japan and South Korea to claw back market share.

• Scale and strategic integration: The merger reunites two state shipbuilders split in 1999, creating a single champion with the largest global order book and deep ties to the PLA Navy. Analysts say it advances Beijing’s military‑civil fusion by sharing technologies, talent, and infrastructure across commercial and naval lines, including work tied to China’s first homegrown carrier, Shandong.
• Market share and capacity gap: Chinese yards accounted for about 55 percent of global tonnage last year, while the US share was under 0.05 percent. By the US Navy’s estimate, China has 232 times America’s shipbuilding capacity, underscoring the industrial asymmetry shaping maritime competition and procurement timelines.
• Headwinds and regional response: With prospective US port fees on China‑built ships and softer global demand, orders are wobbling. Yangzijiang logged 14 ships worth $540 million in the first half of 2025 versus 126 ships worth $14.6 billion in 2024, as Clarkson’s reported a 48 percent drop in global orders. Japan’s industry is mobilizing an “All Japan” strategy and new subsidies to raise market share to 20 percent by 2030.

“China cautions tech firms over Nvidia H20 AI chip purchases, sources say,” Reuters

Chinese internet giants including Tencent and ByteDance were called in by the Cyberspace Administration of China to explain purchases of Nvidia’s H20 accelerators, with regulators expressing concern that documentation required for US reviews could expose sensitive client data. While no outright ban has been ordered, officials questioned why firms were not opting for domestic chips, a stance that could chill Nvidia’s newly restored China access after Washington’s policy reversal in July. The scrutiny comes as state media amplifies security worries, Beijing pushes self‑reliance, and the US considers allowing scaled‑down Blackwell sales, leaving both multinationals and Chinese buyers navigating shifting political and supply‑chain risks.

• Regulatory pressure without a ban: CAC and other agencies queried Tencent, ByteDance, Baidu, and others on H20 purchases and potential information‑security exposure from materials submitted for US review, but stopped short of ordering a halt to buying. Separate media reports described guidance discouraging use for government‑related work and, in some cases, suspension requests, which Reuters could not independently confirm.
• Market implications for Nvidia and rivals: Even absent prohibitions, companies may align with regulators, threatening Nvidia’s China revenue stream, which was $17 billion in the year ended 26 January, or 13 percent of total. SMIC shares jumped on expectations of demand for local chips, and authorities signaled preference for domestic alternatives as Huawei and others race to match H20 performance amid US equipment sanctions.
• Policy whiplash and compliance calculus: The US effectively banned H20 sales earlier this year before reversing in July; President Trump has floated permitting a scaled‑down Blackwell in China. Nvidia says H20 is not a military or government product. A separate US deal will remit 15 percent of revenue from certain advanced‑chip sales by Nvidia and AMD to the government, while China’s guidance reportedly extends to AMD accelerators as well.

"Airbnb Needs to Win Over Policymakers – the Cost Is Adding Up," Skift

Airbnb has acknowledged that its financial investments aimed at influencing policymakers are expected to lower its profit margins. As regulatory pressures mount in key markets, the company is ramping up lobbying efforts and strategic partnerships, particularly around major global events like the Olympics and World Cup, in an attempt to build better relations with lawmakers and address challenges posed by local laws.

• Airbnb anticipates that its adjusted EBITDA margin will decrease due to spending on policy initiatives and growth investments, despite a previous margin of 52% in Q3 2024.
• The company has significantly increased its lobbying expenditure, spending $610,000 in the U.S. by June 30, 2025, and plans to continue this trend to combat regulatory challenges.
• CEO Brian Chesky has highlighted partnerships with local governments, particularly in relation to major events, as a key strategy for improving relations with regulators and addressing housing shortages in host cities.

“8 Out of Top 10 Countries for U.S. Tourism Showed Declines in July,” Skift

Overseas visits to the US fell 3.1 percent in July, marking declines in five of the past six months, according to preliminary government data. Western Europe arrivals were down 4 percent year over year, led by a 14.7 percent drop from Germany. China fell 13.8 percent, India 5.5 perent, and several other key markets also contracted, with only Japan and Italy posting gains. The softness excludes Canada and Mexico, though separate figures show Canadian trips to the US slumping in June.

• The data at a glance: July overseas visits to the US fell 3.1%. Western Europe arrivals declined 4 percent year over year, led by Germany down 14.7 percent; China fell 13.8 percent; India 5.5 percent; Switzerland 12.7 percent; the Netherlands 7.2 percent. Eight of the top 10 overseas markets declined; only Japan rose 9.1 percent and Italy 6.3 percent.
• Canada signal is flashing red: While excluded from the overseas tally, Canadians’ travel to the US slumped in June, with air trips down 22 percent and car crossings down 33 percent, the sixth straight monthly drop, per Statistics Canada reporting cited by Skift.
• Policy backdrop raises barriers: Skift links the slump to higher visa-related costs and revived restrictions, citing reports of tourist detentions, renewed travel bans, and an 80 percent federal funding cut to Brand USA in the “One Big Beautiful Bill Act”—all factors that could further suppress inbound demand to the US.