China Diplomat warns Washington of further restrictions on investment, AI chips
China's Ambassador to Washington Xie Feng crossed wires late Wednesday, via Reuters, while speaking at the Aspen Security Forum where he criticized the US consideration for review of the outbound investment about China and further curbs on AI chips to the Asian nation.
Chinese Diplomat Xie initially praised the nation’s ideology of restraining trade or tech war before showing the ability, as well as readiness, to retaliate if the US imposes more curbs on its chip sector.
China’s Xie showed readiness to compete with the US technologies on fairgrounds should Washington go further on its harsh stand against investments and AI chip exports to Beijing.
The news also quotes China’s targeted move on the US company, namely Micron Technology, as well as US Treasury Secretary Janet Yellen’s comments suggesting the investment/chip curbs are for security reasons.
On the same line are the news, shared by Reuters, stating that the US House of Representatives committee has launched an investigation into investments by four US venture capital firms into Chinese artificial intelligence (AI) and semiconductor companies.
Market implications
The news prods S&P500 Futures from tracking Wall Street’s gains as it seesaws at the yearly high surrounding 4,600 marked the previous day, mildly offered by the press time. Additionally, the news adds strength to the US Dollar’s corrective bounce and weighs on the AUD/USD pair.
Also read: AUD/USD prods four-day downtrend below 0.6800 amid anxiety ahead of Australia employment clues
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
