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Bloomberg
The Trump administration is considering tighter curbs on technology exports, a step that Deutsche Bank AG says would have a “profound and long lasting adverse
impact†on relations between the US and China.
A request for public comment, published on the US government’s Federal Register, asks if a list of new technologies that have national security applications — from artificial intelligence (AI) to microprocessors and robotics — should be subject to more stringent export-control rules. That would affect US manufacturers as well as purchasers in China.
The news added to bearish sentiment in China’s stock market on Tuesday, with two manufacturers of surveillance equipment — Han-gzhou Hikvision Digital Technology Co and Zhejiang Dahua Technology Co — leading large-cap losses.
“Many technologies and products are used for both military and civil purposes,†Deutsche Bank analysts Zhiwei Zhang and Yi Xiong wrote in a note. “In an economic cold war, even if the controls are not imposed on certain products at the current stage, companies will likely feel the potential risk if the tension escalates between China and the US down the road.â€
High-end technology has taken center stage in a burgeoning US-China trade war, as President Tru-mp pushes Beijing to drop plans to dominate leading-edge industries like electric vehicles, robotics and artificial intelligence. Trump plans to hold a high-stakes meeting with Chinese President Xi Jinping at the Group of 20 summit in Argentina at the end of the month.
Analysts said they put chances of a trade deal between the world’s biggest economies at 40 percent — down from 50 percent previously — after neither side showed any sign of backing down at last weekend’s Asia-Pacific Economic Cooperation summit.
