Biden Targets China’s Chip Industry With Wider Trade Bans
Published On Dec 2, 2024, 5:02 AM
The Biden administration has announced new restrictions on the export of advanced technology, specifically targeting certain types of chips and machinery that can be sent to China. This decision aims to prevent China from developing advanced military technologies and artificial intelligence capabilities. The updated rules will add over 100 Chinese firms to a restricted trade list and mark the third major update to export control measures in recent years. The Commerce Secretary emphasized that the controls are intended to protect national security while minimizing negative impacts on U.S. businesses.
Stock Forecasts
NVDA
Positive
Given the increased restrictions on China and the focus on maintaining technological dominance, U.S. semiconductor companies may benefit from reduced foreign competition and increased government support. However, companies heavily reliant on the Chinese market may face challenges in their operations.
QCOM
Negative
On the other hand, companies that manufacture or sell technology products in China may experience a decline in revenues due to these restrictions, which could negatively impact their stock prices.
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