U.S.-China Tensions Could “Supercharge” The Asian Behemoth’s Tech Innovation

JPMorgan Chase
JPMorgan Chase

U.S.-China tensions have forced Beijing to become more self-sufficient, which could be an advantageous thing for innovators in China, according to an investment specialist at JPMorgan Asset Management.

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“One of the unintended consequences of this push and shove between the U.S. and China is that it has just underscored this determination in China to become self-sufficient in a whole variety of industries,” Alexander Treves told CNBC’s “Street Signs Asia” on Thursday.

In the mid-1990s, Chinese companies mainly were mass-market manufacturers of “commoditized goods,” he added.

“Now, you’ve got genuine tech innovators,” he said. “I think that the geopolitical tension you’re talking about will just actually supercharge that — because China needs to do these things itself, and they will carry on with progress in that area.”

China has advanced its investment into its local chip industry in a bid to be self-reliant when it comes to crucial technology for various products.

Treves said investors should look for companies that will succeed despite geopolitical tensions.