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Hochuls China Tech Crackdown A Blow To Us Tech Companies

Hochul's China Tech Crackdown: A Blow to US Tech Companies

New York Governor's Executive Order Targets Chinese Companies and Individuals

In a move that has sent shockwaves through the tech industry, New York Governor Kathy Hochul has signed an executive order that restricts business with Chinese companies and individuals. The order prohibits "transactions" with 11 "high-risk Chinese entities" and any US-based subsidiaries, citing concerns about national security and the protection of New Yorkers' personal information.

Companies on the Blacklist

  • Huawei Technologies Co.
  • Alibaba Group Holding Ltd.
  • Tencent Holdings Ltd.
  • ZTE Corp.
  • Hikvision Digital Technology Co.
  • China Mobile Communications Corp.
  • Beijing ByteDance Technology Co.
  • Sugon Information Industry Co.
  • China Electronics Technology Group Corp.
  • Inspur Group Co.
  • Chengdu Haite High-Tech Co.

Implications for US Tech Companies

The executive order has far-reaching implications for US tech companies that operate in New York or have dealings with Chinese entities. It is unclear how the order will be enforced, but experts speculate that it could lead to fines, sanctions, or even blacklisting.

Impact on Investment

The order is likely to discourage investment from Chinese tech companies in New York. In recent years, Chinese companies have poured billions of dollars into New York's tech sector. This investment is now at risk.

Disruption of Supply Chains

The order could also disrupt supply chains for US tech companies that rely on Chinese components or manufacturing. Many US tech companies have outsourced production to China to reduce costs. The executive order could make it more difficult and expensive for these companies to obtain the components they need.

Conclusion

The long-term impact of Governor Hochul's executive order remains to be seen. However, it is clear that the order has the potential to significantly disrupt the US tech industry. US tech companies will need to carefully consider the implications of the order and adjust their operations accordingly.


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