If he does declare his candidacy, the financial world is monitoring whether he will also use the occasion to announce a rumored executive order to impose a blanket ban on new American capital investments in Chinese high-tech sectors. Although the news of an imminent ban on all high-tech sectors was reported by Bloomberg recently, such a prospect has been brought up for months. Then, Chinese stocks may surprise the market with a rebound rather than a crash. Nonetheless, as less is invested by Americans in Chinese stocks, their influence wanes at the same time. China is investing heavily in its high-tech sectors in order to be self-dependent and it can be expected that the impact will also diminish each time new sanctions are announced.

Source: The Standard April 25, 2023 01:10 UTC