China's sanction-hit tech industry puzzles over impact of Trump, Harris presidencies

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United States,Donald Trump,Kamala Harris

BEIJING: Donald Trump winning the US presidency next week would muddle the outlook for Chinese technology firms far more than a win for Kamala Harris, with executives saying his unpredictable style could lead as much to a reprieve for the sanction-hit industry as increased restrictions.

The Republican candidate initiated a Sino-US trade war during his 2017-2021 presidency by banning high-tech exports to China citing unfair trade practices and national security. Yet his combative approach coupled with his record of sudden, wide-ranging tariffs could unsettle US allies and undermine any coordinated effort, Chinese tech executives said.

Half of the analyses considered a Trump victory as negative in the short term due to a greater perceived likelihood of intensifying export controls and sanctions on China's semiconductor sector. In Trump's term as president, he imposed tariffs on billions of dollars worth of Chinese goods and sanctioned conglomerates including chipmaker SMIC and telecommunications manufacturer Huawei.

Trump's unpredictability is borne out in statements and social media posts. He expressed willingness during his presidency to reverse course on measures he took against Huawei and peer ZTE. During his current campaign, he has railed against a ban on Chinese-owned social media app Tik Tok that he himself proposed while in office.

In 2016, China had four government procurement projects worth over 10 million yuan , replacing foreign hardware and software with domestic alternatives, showed a Reuters review of tenders. This year, it had 169 such projects - 75 involving over 50 million yuan in state funds.

 

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