US intensifies sanctions on Chinese tech giants for semiconductor development, impacting Alibaba and peers

From Benzinga: 2024-07-17 05:58:59

Alibaba and other Chinese tech giants may face challenges as US intensifies semiconductor sanctions on China. Biden administration warns allies of strict trade measures against chipmaking machinery providers aiding China’s semiconductor development. US considers using Foreign Direct Product Rule to impose controls on foreign-made products with American technology.

The US has discussed the possibility of further sanctions on specific Chinese chip companies with officials in Tokyo and The Hague. Earlier in 2024, Alibaba’s Joe Tsai highlighted China’s lag in AI development compared to the US due to technology restrictions. Export restrictions have affected Alibaba’s cloud business and computing services.

Alibaba and peers are dealing with slower Chinese economic growth, impacted by a property slump and job insecurity. BABA shares trade lower premarket at $78.31, BIDU slightly up at $93.77, and PDD down at $135.00. Chinese tech stocks and EV stocks like NIO, XPeng, and Li Auto also face challenges amid disappointing economic reports.



Read more at Benzinga: What’s Going On With Alibaba And Peer Chinese Stocks On Wednesday? – Alibaba Gr Hldgs (NYSE:BABA)