China is ramping up its scrutiny on major US tech companies like Nvidia, Apple, Google, Broadcom, and Synopsys. According to The Wall Street Journal, Beijing is utilising regulatory hurdles and antitrust investigations as retaliatory measures against US trade restrictions. This move is part of China’s broader strategy to counter Washington’s crackdown on its access to advanced technologies, particularly in the semiconductor industry.
In response to the US’s aggressive stance on limiting China’s access to cutting-edge technology, Beijing is tightening its grip on American tech giants operating within its borders. One notable action is China’s decision to delay approval of Synopsys’ $35 billion acquisition of Ansys, a key semiconductor design company. By stalling or blocking such major deals, China sends a clear message: if the US limits China’s access to technology, China will retaliate by making it harder for American firms to operate in its market.
Impact on Nvidia, Apple and Google
Nvidia, already grappling with US export restrictions on high-end chips to China, faces further scrutiny. Apple, which relies on China both for manufacturing and sales, is also under intense examination. For companies like Google, navigating the regulatory landscape in China is becoming increasingly challenging, as the country seeks to maintain greater control over foreign firms in its economy.
China’s aggressive tactics could have long-term consequences. If Beijing continues to make it difficult for US companies to do business, many may explore alternative manufacturing bases in regions like Southeast Asia or India, reducing their dependence on China. This could result in billions of dollars in lost investment for China and complicate global supply chains.