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New US President is unlikely to expand sanctions against China in the tech sector, analysts say
The time is approaching for the inauguration of the new US President Joseph Biden, who has inherited a difficult legacy in the field of relations with China. Industry experts believe that Trump’s successor will not aggravate the situation, but one should not expect immediate relief from him.
Image source: TSMC
The existing restrictions on cooperation with Chinese companies may be partially lifted some time after Joseph Biden took office, according to Seeking Alpha, citing comments from Wedbush Securities analysts. Companies that have refused to cooperate with Huawei or SMIC no longer rely on core revenue when forming their financial forecasts. Those who are ready to resume cooperation with Chinese partners in the event of a relaxation of sanctions will receive an advantage in the form of an additional source of profit.
Under Biden, experts say the list of sanctioned Chinese companies is unlikely to expand. Directly, the relationship between American and Chinese companies will be subject to the previous principles, since US representatives are inclined to suspect Chinese partners of violating the confidentiality of customers’ personal data and illegal use of intellectual property. Reducing tensions will allow many companies to benefit, including Apple, NVIDIA, TSMC, Cisco, NXP Semiconductors and Western Digital Corporation.