The US-China decoupling in the tech sector is hurting both countries
Live MintA messy tech breakup between the US and China is forcing a rethink about what the industry might look like for consumers in a decoupled world. Last week, the Pentagon blacklisted internet and gaming giant Tencent Holdings Ltd for alleged links to China’s People’s Liberation Army. The US has spoken of national security risks as a reason to go after Chinese tech companies, but leaders haven’t been very forthcoming about what exactly that means. Either the US will end up sharing more information about why it sees China’s most valuable tech firm as a threat, or it will amount to a legal headache and temporarily hit the stock while really ticking off Beijing. Washington is clear that it doesn’t want its adversary to get ahead in innovation, but its whack-a-mole approach to holding China’s tech sector back is spurring a race to the bottom.