US-China Trade Conflict Impacting Tech Giants Like Apple, Google, Nvidia: Report

To retaliate against the new tariffs being imposed by the US, China has put firms like Broadcom, Google, Synopsys, along with Apple, and Nvidia under the scanner. 

The report said regulatory obstacles and investigations are a part of China’s strategy to fight back against the American government’s clampdown on Chinese access to advanced tech, specifically in semiconductors.

Source : Unsplash

China is reportedly increasing the scrutiny on US tech giants through antitrust investigations and regulatory delays. The Chinese authorities are using such measures to strike back at the escalated trade restrictions from the US.

According to a report by the Wall Street Journal, the Asian country has ramped up the scrutiny on US firms such as Nvidia and Apple in a bid to get back at US President Donald Trump’s tariff threats.

The trade conflict between the US and China is getting more intense and to retaliate against the new tariffs being imposed by the US, China has put firms like Broadcom, Google, Synopsys, along with Apple, and Nvidia under the scanner. 

How Is China Fighting Back?

The report said regulatory obstacles and investigations are a part of China’s strategy to fight back against the American government’s clampdown on Chinese access to advanced tech, specifically in semiconductors.

As a result of the increase in tensions and curtailment from both countries, some of the biggest tech players in the world are getting caught in the crossfire and being pulled in a trade conflict that is getting worse by the minute.

China is making it increasingly difficult for US companies working in the country. The report said that the government’s decision to delay the approval of Synopsys’ acquisition of Ansys worth $35 billion is motivated by these reasons. The deal is a major one in the semiconductor design industry.

Meanwhile, Nvidia is facing more scrutiny in China, which is also one of the biggest markets for the company. Apple also depends on China for both manufacturing and sales and is facing more restrictions and investigations from the Asian country.

Notably, this isn’t the first time such tricks have been used by countries to manipulate geopolitical equations. Earlier, the US imposed trade restrictions on Huawei, curbing China’s access to advanced semiconductors.

What Does Future Look Like?

However, this strategy could become problematic for China if the companies look for alternative countries for shifting their businesses. Already, many corporates are looking at India and Southeast Asia as a possible replacement for China. 

The next steps of both countries are not very clear at the moment as none seem to be backing down from the conflict. However, if this trade war continues for long, not only companies, its effects might be felt by the consumers as well, as supply chains get impacted.