Tension Between US and China May Reduce Technology Stocks


The technology war has been going on between the United States and China for a long time. Neither side wants to take a step back, and although there are small deals at different times, the event is not completely closed.

The tension between America and China that has been endless for years has had negative effects in many areas so far. It has been suggested that this never-ending tension can lower technology stocks now. While it is a known fact that the production activities have been disrupted due to the coronavirus pandemic in the world, the measures to be taken have started to be talked about nowadays.

Although trade, political and diplomatic relations are getting worse, there are some reconciliation attempts for the USA and China, but the two countries chose not to compromise their interests. In this period, when the tension between the markets is at the top point due to the economic effects of the coronavirus pandemic, experts argue that the tension between the two major countries will cause great economic damage. Researchers, who reported that external effects such as credit crisis will also be quite effective in this case, say that this situation will cause deficiencies especially in technology.

Will the supply chain be affected by this friction?
Experts say that the constant talk of issues related to the taxation of Apple, Facebook, Amazon, Netflix and Google, the five major companies of the USA, is due to the complex situation of the USA, the tightening of the ropes between the two countries and the fact that this takes a large place in the international arena. stresses that it overshadows its importance. So, according to experts, people focus on processes rather than events. Public opinion polls on this issue show that 65% of Americans see China as negative. Let us remind you that this number was about 30% about ten years ago.

According to experts, the policy ropes of the Huawei company in the face of this tension and the USA regarding the coronavirus epidemic may further stretch and this may affect the global stocks and cause a technology crisis. It is still unclear whether there will be a change in supply chains. The most correct answer to the subject will be the next attitude of the countries and we will watch and see what the process will bring together.


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