In This Article:
China could make life harder for US Big Tech companies like Tesla (TSLA) and Apple (AAPL), but it lacks the direct leverage the US holds.
Scott Kennedy, senior adviser and trustee chair in Chinese business and economics at the Center for Strategic and International Studies, explains how China might still push for a deal with the US.
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But how much power does China have to really deign the US large cap tech names?
Uh, China is a monster market for many uh American companies. Um, and they can uh impose a lot of pain if they choose to. I don't think they want to. They want those companies' investments and partnerships in China and in third markets. Uh, but um if they decided to, uh they could make life much more difficult for Tesla in China, for Apple, uh for some other companies. Uh, they've already launched investigations into Google, uh into DuPont. Um, yet China doesn't have the direct level of leverage that the US does, but it can impose pain. I think the main way the Chinese can hurt the US is by fighting back in general, uh looking like they have staying power, which makes American financial markets uh less stable. Uh, and we've seen that over the past few weeks. I think that's their main strategy to try to get the US to want to get to a deal.
