U.S. Tech Out of China Alarms American Firms

Highlights:

  • Trump administration to restrict American tech companies to deal with Chinese counterparts
  • Tech industry warns the American tech companies

The U.S. administration wants to protect the national security of the country by not allowing the flow of technology to China. But the tech companies in the U.S. are worried that this could undermine them instead.

The Trump administration proposed this to prevent China from dominating the global market for the advanced technologies which has put it on collision with the same companies which the Trump administration wants to protect.

The Trump administration has taken some efforts to stop or restrict those tech companies who specialize in Microchips, Biotechnology, artificial intelligence, etc. The Trump administration also alarmed to stop the flow of technologies to China in terms of Microchips, AI, etc.

The Trump administration says that it could drain expertise, research and revenue from the United States which ultimately erodes America’s Advantage.

The commerce department of the United States has considered to adopt a sweeping proposal which would likely allow the United States to block the transactions between the Chinese counterparts and the American tech companies. The rules which are proposed to put new restrictions on the Chinese investment in the United States would prevent the American tech companies to from exporting certain technologies and products with the other foreign nationals and because of this American tech companies are scrambling to respond.

The technology industry has given the warning that restricting access to China in terms of both buying and selling of products could cost American tech companies and can end up under cutting the United states of America as the biggest global hub of research and development.