The United States is expected to apply additional restrictions to counter Chinese competition, since “the decoupling is really in full force,” according to Steven Okun, founder and CEO of consulting firm APAC Advisors.
“The question is to what extent and how broad will it be,” Okun said on CNBC’s “Street Signs Asia” Monday.
Last week, Congress voted 50-0 to push legislation compelling China’s ByteDance to divest from TikTok or risk the US banning the popular video app. House Speaker Mike Johnson told reporters that the TikTok divestment bill would be debated on the floor Wednesday.
“So long as it is owned by ByteDance and thus required to collaborate with the Chinese Communist Party, TikTok poses critical threats to our national security,” according to a press statement by the Select Committee on the Chinese Communist Party.
The Committee desires a “reset,” according to China Okun.
“You block China from entering the US market, particularly in areas where the party has some control, and then you expand domestically rather than relying on China. So this is just part of a larger approach,” he explained.
In recent years, the United States has increased its pressure on Chinese enterprises, particularly in the semiconductor, electric vehicle, and biotechnology sectors.
“This will apply to EVs. I believe it will apply to the broader green sector. It will undoubtedly apply to biotechnology; I believe this is the field to watch next.”
The United States Senate voted earlier this month to adopt legislation that could limit business with Chinese biotech corporations including WuXi AppTec and BGI due to national security concerns.
China is viewed as a danger to the US auto industry, as US vehicle exports fall and businesses such as General Motors reduce overseas operations.
China may swamp the US electric vehicle market with its offerings, Energy Secretary Jennifer Granholm warned last week. “We are very concerned about China bigfooting our industry in the U.S.”
The White House announced last month that the US was looking into whether Chinese car imports pose national security dangers because they could collect sensitive data about US persons and infrastructure and send it to China.
China’s Foreign Minister Wang Yi told reporters last week that the US has been coming up with “new ways to suppress China,” claiming that US claims against China have reached a “unbelievable degree.”
In October 2022, the United States issued laws aimed at preventing China from gaining access to high-tech semiconductor chips and chip-manufacturing equipment, citing concerns that China could use them militarily.
A year later, the United States said that it will impose additional limitations to plug gaps that had opened up following the implementation of AI chip export limits in 2022.
“If it [U.S.] persistently monopolizes the high end of the value chain, and keeps China at the low end, where is fairness and competition?” Wang stated.
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