Day: June 24, 2020

Sino-U.S. tech race turbo-charges China chip investment, triggering bubble fear

SHANGHAI (Reuters) – U.S. curbs on Chinese tech firms amid the intensifying Sino-U.S. battle for tech supremacy are feeding an investment boom across China’s semiconductor industry, driving prices of both publicly traded and venture-backed companies into bubble territory.

Investors have pushed the share prices of the country’s 45 listed chipmakers to over 100 times the companies’ earnings, making semiconductors the priciest sector in the stock market.

There is also a scramble for pre-listing deals, as venture capitalists once focused on consumer internet companies turn their attention to chips. Such investment in the sector almost doubled to 22 billion yuan ($3.11 billion) in two years through 2019, showed data from Zero2IPO.

“It’s not just the government, it’s the private sector too – everyone in China is trying to invest in something related to semiconductors,” said Jin-biao Huang, co-founder of six-year-old Nuvolta, a maker of chips for wireless charging.

Many startups have

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Trump administration says Huawei, Hikvision backed by Chinese military: document

WASHINGTON (Reuters) – The Trump administration has determined that top Chinese firms, including telecoms equipment giant Huawei Technologies [HWT.UL] and video surveillance company Hikvision (002415.SZ), are owned or controlled by the Chinese military, laying the groundwork for new U.S. financial sanctions, according to a document seen by Reuters on Wednesday.

FILE PHOTO: The Huawei logo is seen on a communications device in London, Britain, January 28, 2020. REUTERS/Toby Melville

A U.S. defense official speaking on condition of anonymity confirmed the authenticity of the document and said it had been sent to Congress. Washington placed Huawei on a trade blacklist last year over national security concerns and has led an international campaign to convince allies to exclude it from their 5G networks.

The list of 20 companies that Washington alleges are backed by the Chinese military and operate in the United States was first reported by Reuters. It also

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Senators propose reform to key U.S. tech liability shield

WASHINGTON (Reuters) – Two U.S. senators on Wednesday introduced legislation to reform part of a federal law that largely exempts tech platforms such as Facebook and Twitter from legal liability for the material their users post.

FILE PHOTO: U.S. Senator John Thune (R-SD) asks a question during an oversight hearing held by the U.S. Senate Commerce, Science, and Transportation Committee to examine the Federal Communications Commission (FCC), in Washington, U.S. June 24, 2020. Jonathan Newton/Pool via REUTERS

The legislation, titled the Platform Accountability and Consumer Transparency Act, or PACT, from Democratic Senator Brian Schatz and No. 2 Senate Republican John Thune aims to provide more accountability and transparency for large tech platforms with respect to content moderation decisions.

There are mounting calls to reform Section 230 of the 1996 Communications Decency Act at a time when legal immunity for tech platforms has come under severe scrutiny.

“My own judgment is

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Exclusive: Trump administration says Huawei, Hikvision backed by Chinese military – document

FILE PHOTO: The Huawei logo is seen on a communications device in London, Britain, January 28, 2020. REUTERS/Toby Melville

WASHINGTON (Reuters) – The Trump administration has determined that top Chinese firms, including telecoms equipment giant Huawei Technologies [HWT.UL] and video surveillance company Hikvision (002415.SZ), are owned or controlled by the Chinese military, laying the groundwork for new U.S. financial sanctions, according to a document seen by Reuters on Wednesday.

A U.S. defense official speaking on condition of anonymity confirmed the authenticity of the document and said it had been sent to Congress.

The list of 20 companies that Washington alleges are backed by the People’s Liberation Army also includes China Mobile Communications Group (0941.HK) and China Telecommunications Corp [CTTTC.UL] as well as aircraft manufacturer Aviation Industry Corp of China.

The designations were drawn up by the Defense Department, which was mandated by a 1999 law to

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