Biden Set To Sign Order To Limit Critical U.S. Technology Investments In China By Mid-August; Measure Would Curb Transactions On Some Critical Technologies; China Has Threatened To Retaliate Over Any U.S. Restrictions
Portfolio Pulse from Happy Mohamed
President Biden is expected to sign an order by mid-August that would limit U.S. investment in China, particularly in critical technologies. China has warned of retaliation if the U.S. imposes such restrictions.
July 28, 2023 | 4:03 pm
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NEGATIVE IMPACT
The iShares China Large-Cap ETF (FXI) could be negatively impacted by Biden's order limiting U.S. investment in China.
FXI tracks the investment results of an index composed of large-capitalization Chinese equities. Any U.S. restrictions on investment in China could potentially decrease the demand for these equities, leading to a negative impact on FXI.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90
NEUTRAL IMPACT
The SPDR S&P 500 ETF (SPY) could experience some volatility due to the potential geopolitical tensions between the U.S. and China.
SPY tracks the S&P 500 Index, which includes companies with significant exposure to the Chinese market. Any geopolitical tensions between the U.S. and China could introduce volatility into the market, potentially affecting SPY.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 70