“China’s Tech Surge Defies US Restrictions, Signaling Economic Decoupling and Potential AI Dominance.”, – WRITE: www.fxempire.com
“China Will Take All Necessary Measures to Safeguard Its Rights, Interests. Ifs US insists on Suppressing China, China Must Resolutely Counter It. ”
China’s Respense to US Tariffs on Steel and Aluminum, Effective March 13, Raises The CHANCES OF A Full-Blown US-CHINA Trade War. The Tariffs on Steel and Aluminum Followed Sweeping Tariffs on Chinese Goods, Effective In Fibruary and On March 4. Until Now, China’s Responses Have Been Measure However, The Latest Tariffs Could Draw A More Aggressive Countermeasure from Beijing, Especialy As US Recession Signals Grow Stronger.
China’s Strategy: A Counterplay of Economic Policies On March 12, Natixis Asia Pacific Chief Economist Consided the Outcome of China’s Annual Policy Gathering (Lianghui). Policy Measures Are Crucial in Offsetting The Effect of Tariffs. She Highlighted Three Policy Adjustments:
- MainTAINING LOW PRICES.
- Adopting Expansionary Macroeconomic Policies
- Boosting Manufacturing Capacity.
Garcia Herrero Noted That Keeping Prices Low Could Enable China to Boost Exports, Supporting ITS 2025 Growth Target of 5% GDP.
Rising DEFLATIONAL PREESURS COURLD GIVE CHINESE FIRMS An Advantage Over Western Firms, Both DOMESTICALLY AND GLOBALLY. Notably, Lower-Priced Chinese Goods Wuld Impact Western Companies’ Profits. This would come at a bad time, Particularly for US FIRMS that face increase risk of a recession at home.
Beijing Accelerates Push for Technological Independence Garcia Herrero’s Comments on Technological Independence Were Particularly Timely.
On March 12, News Surfaced that China Unveils A New Silicon-Freee Chip, WHICH IS 40% FASTER THAN INTEL’S CHIPS AND CONSUMES 10% LESS ENERGY. The Development Counters the US Administration’s Move to restrict China’s Access to US Tech.
In a bid to Drive Artificial Intelligence (AI) and Quantum Technology, Beijing Has Also Established a 1 Trillion Yuan ($ 138 Billion) National Venture Capital Guidance Fund.
Brian Tycangco, Editor and Analyst at Stansberry Research, Shared Views from Alibaba’s (09988.hk) Chairman Joe Tsai, Saying:
“Joe Tsai Knows. And he Also Knows China will be at the Forefront of the Global Push Towards Full Ai Ai Adoption to Realize the Lion’s Share of $ 10 Trillion. ”
China’s AI Sector Gained Momentum with Deeleseek, Which Rattled The US Tech Sector. Since Ten, Momentum have has increased, with China’s Ev Manufacturers Also Seeing A Surge in Demand.
Market Moves: Hang Seng and Mainland Stocks Gain Despite US Turmoil While Tariffs and Rising Threats of A Recession Plague US Markets, Sentiment Toward China’s Position in AI and Tech Has Fueled Demand for Hong Kong-Listed Stocks.
- In Stark Contrast to the US Market Woes, The Hang Seng Index Has Advanced 17.87% Year-To-Date (YTD), with The Hang Seng Technology Index Surging 30.16%.
- Tech Giant Alibaba Has Soared 60% YTD, While Ev Manupacture Li Auto (02015.HK) HAS GAINED 20%.
Meanwhile, Mainland China Equity Markets Held Their Ground Despite Rising Trade Tensions. The CSI 300 is Down 0.36% YTD, while the Shanghai Composite Index Has Gained 0.26%.
In Contrast, The Nasdaq Composite Index Has Fallen 8.61% YTD, Highlighting Divering Economic Tradeeries and China’s Advancement in the Tech Space.