Sino-US trade relations and cooperation strategies. Chess king on chess board with American and Chinese flags.
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Steven Okun, founder and CEO of consulting firm APAC Advisors, said the United States may implement more restrictions to curb competition from China because “decoupling is indeed comprehensive.”
“The question is how widespread it is and how widespread it is,” Okun told CNBC’s “Street Signs Asia” on Monday.
Last week, lawmakers voted 50-0 to pass a bill requiring China’s ByteDance to spin off TikTok or risk a U.S. ban on the popular video app. House Speaker Mike Johnson told reporters that the TikTok divestment bill will be introduced on Wednesday.
“TikTok will pose a serious threat to our national security as long as it is owned by ByteDance and therefore required to cooperate with the Chinese Communist Party,” one person said. press statement It is the responsibility of the Special Committee of the Communist Party of China.
Zina Okun said the committee wanted a “reset”.
“You block China’s access to U.S. markets, especially markets where the Communist Party can have some kind of control, and then you build domestically instead of relying on China. So that’s just an important part of the broader strategy,” he added.
In recent years, the United States has continued to increase pressure on Chinese companies, especially in the fields of semiconductors, electric vehicles, and biotechnology.
“That’s going to apply to electric vehicles. I think it’s going to apply to the broader renewable energy sector. It’s definitely going to apply to biotech – I think that’s where you want to look at next.”
The U.S. Senate voted to pass it earlier this month Approves a bill that could restrict business with Chinese biotech companiesCompanies such as WuXi AppTec and BGI cited national security concerns.
China is seen as a threat to the U.S. auto industry as U.S. auto exports decline and companies like General Motors cut international operations.
Energy Secretary Jennifer Granholm warned last week that Chinese electric vehicle products could flood the U.S. market. “We are very concerned about China’s aggressive expansion of our industry in the United States”
The White House said last month The United States is investigating Whether imported cars from China pose a national security risk because they can collect and send sensitive data about U.S. citizens and infrastructure to China.
Chinese Foreign Minister Wang Yi told reporters last week that the United States has been coming up with “new ways to suppress China” and said the U.S. accusations against China had reached “unbelievable levels.”
In October 2022, due to concerns that China may use high-tech semiconductor wafers and wafer manufacturing equipment for military purposes, the United States introduced rules aimed at preventing China from obtaining high-tech semiconductor wafers and wafer manufacturing equipment.
A year later, the United States said it would introduce more restrictions to close the gap that will arise when export restrictions on artificial intelligence chips take effect in 2022.
“If the United States continues to monopolize the high end of the value chain and puts China at the low end, where is the fairness and competition?” Wang said.
—CNBC’s Evelyn Cheng and Clement Tan contributed to this article.
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