US-China Tech Feud Redraws Investment Map
Investors must pick between painful options
A new set of “geopolitical rules” will come into effect at the beginning of next year, just weeks before the US inaugurates its next leader.
On January 2nd, the US government will restrict American outbound investment in quantum computing, AI, and chips. The rules focus on “countries of concern” from China to Russia; however, Bejing’s place at the top of this list is leaps and bounds greater than the next country.
Washington is already monitoring US outbound investments in these sectors, but from next January, the US Treasury Department will go after companies or individuals that break the rules. This means any US business (or citizen) who invests in certain areas within China’s AI, quantum, or chip industries, could breach US law.
The US is redefining the technology fight with China by going after investments. It is no longer about Chinese surveillance (i.e. Chinese 5G, smartphones, apps being Chinese spy tools) or business fears (i.e. cheap Chinese EVs scaring Western automotive firms).
By going after capital flows, the US is cutting the oxygen to China’s most critical industries - and, by extension, to the grand plans Beijing formulated decades ago.
🎃 HALLOWEEN SALE 🥳
Keep reading with a 7-day free trial
Subscribe to Mr. Geopolitics to keep reading this post and get 7 days of free access to the full post archives.