(Shuli Ren – Bloomberg)
Just as the market’s love for the FANG stocks [Facebook Inc., Amazon.com Inc., Netflix Inc. and Google’s parent Alphabet Inc.] turns to angst, the U.S. government is looking to ban Chinese investments in its technologies. That’s a bigger problem for the country’s expensive chipmakers than their would-be Asian acquirers.
Semiconductors and 5G wireless communications are among areas that would be placed off-limits under plans to invoke a law reserved for national emergencies, Andrew Mayeda, Saleha Mohsin and David McLaughlin of Bloomberg News reported Wednesday in Asia. The restrictions would be the latest step in President Donald Trump’s plan to punish China for what he sees as violations of American intellectual property rights.
A ban will hardly raise eyebrows in China. Companies there are already stepping away from overseas acquisitions: Homegrown is the new buzzword in technology. Click here to read more.