US Cuts Down on Tech Investments in China

The West has made major tech investments in China over the past decade, which has resulted in the economic boom of the nation’s tech sector. However, in light of China’s highly aggressive stance on economic, defence, and other vital geopolitical issues concerning the world has triggered the United States of America and its allies to act on it. The Biden government has directed all conglomerates and firms to restrict their tech investments in China, which will have a severe impact on the country in years to come.

China has expectedly issued a warning against this act through their Ambassador in the United States, Xi Feng. He said, “The Chinese government cannot simply sit idly by. There’s a Chinese saying: ‘We will not make provocations, but we will not flinch from provocations.’ So China definitely will make our response,” as per CBS. A quite recent example of America’s economic disengagement with China vis-a-vis tech investments is when Elon Musk announced that he would open a massive manufacturing plant of Tesla cars in India. Prior to that, Apple CEO Tim Cook had also stated that they will ramp up iPhones and other Apple products manufacturing in India.