Alex Wong | News Getty Images | Getty Images US midterm elections could lead to “disruptive changes” in US technology policies if Republicans take control of Congress, according to an analyst. Although both Republican and Democratic candidates have pledged a tough approach to China in an effort to win over voters who see China as a threat to national and job security, Republicans are likely to take a more aggressive stance. “What Republicans and Democrats are fully aligned on is a tough approach to China. One area where they’re less aligned is getting multilateral partners to agree [on the stance toward China]Martin Chorzempa, a senior fellow at the Peterson Institute for International Economics, told CNBC’s “Squawk Box Asia” on Wednesday when asked how the outcome of the midterm elections could affect US-China relations. “A lot of Republicans think this is a waste of time. They might just want to do it themselves, but then that creates a lot of friction with US allies and can lead to more disruptive, disruptive changes in technology policies.” said Horzemba, who cited “techno-nationalism” as a “hot button” issue. Just last month, the US announced export controls limiting China’s access to certain types of advanced semiconductor chips, a move that limits Chinese companies’ access to key technology. Companies will require a license if they use American tools to produce certain advanced computing semiconductors or related manufacturing equipment for sale in China. One of the big challenges facing the tech sector is the friction between the US and China, which is “pulling companies in different directions and potentially breaking the global Internet, multinational companies that want to do business in the US and China,” he said. Chorzempa. .
Potential beneficiaries
But semiconductor companies in Taiwan and South Korea could benefit from a Republican sweep of Congress, according to research firm Natixis. “There’s a lot of uncertainty about whether there will be a change if the Republicans take the House or even the Senate and the House,” Natixis senior economist Gary Ng said during CNBC’s “Squawk Box Asia” on Wednesday . “Increasingly, we’re seeing this tougher approach from the U.S., especially from the Republicans, with more control of the supply chain in tech, especially high tech,” Natixis senior economist Gary Ng said during CNBC’s ” Squawk Box Asia” on Wednesday, adding that the pressure will continue to mount. “If there are more restrictions on Chinese companies, it means there will be more room for growth [semiconductor companies in] Taiwan, or increasingly even from Korea and Japan,” added Ng. But in an interview about chip export restrictions with CNBC’s “Squawk Box Asia” last month, Cornell University’s Sarah Kreps said the U.S. should keep the “bigger picture” in mind as it tries to offset China and that it is “putting its East Asian allies at a disadvantage”.
