If a Republican wins the 2024 presidential election, the U.S. could impose even more restrictions on China, which would be bad news for chipmakers.
What To Know: The fourth GOP presidential debate was filled with fireworks, including shots exchanged between Former South Carolina Gov. Nikki Haley and Florida Gov. Ron DeSantis about China.
Each candidate argued that the other hasn't been tough enough on China as they looked to gain the support of American voters. According to a recent NewsNation poll, 43% of Americans believe China is currently the biggest threat to the U.S.
It started when Haley criticized former President Donald Trump's China policies, noting that he only did a good job when it came to trade.
"He would give them technology that would build up their military and hurt us. He allowed the Chinese infiltration for them to buy up farmland, to put money in our universities and to continue to do things that were harmful for America," Haley said.
DeSantis chimed in, claiming that Haley essentially welcomed the Chinese Communist Party into South Carolina and remains "weak" when it comes to China because of her donors, who make money in China and don't want her to bring down the hammer.
Haley then clapped back, highlighting companies DeSantis is involved with that have ties to China, but DeSantis continued to stress his anti-China stance.
See Also: Ron DeSantis Not Happy Florida State Left Out Of NCAA Football Playoff — And He's Ready To Sue
Why It Matters: If a Republican comes out on top in 2024, it's likely to have implications on the chip space as Republicans generally favor limiting China's global influence more than Democrats and even Democrats have strengthened their stance in recent months.
In October, the Biden administration unveiled new export control rules for companies looking to ship advanced AI chips to China. The tighter controls expand on export restrictions originally introduced a year earlier.
The goal is to stop China from receiving cutting-edge U.S. technologies, namely AI tech, that could be used to strengthen its military.
Nvidia Corp NVDA, the current leader in the AI revolution, has a hold on about 90% of China's AI chip market, per Reuters. Although the company is working closely with the U.S. government to develop chips for China that comply with regulations, the company said on its latest earnings call that it expects China sales to fall sharply in the fourth quarter.
It could get tougher for Nvidia and other chipmakers to keep up with China regulations in 2024 as the presidential election looms. Commerce Department Secretary Gina Raimondo also told reporters this week that the China restrictions are expected to be updated annually.
Photo: Shutterstock
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