SCMP Business
EN
‘Two sessions’ signals China-US tech contest is entering a new era
With the conclusion of China’s annual parliamentary “two sessions” meetings, emerging policy priorities suggest its relationship with the United States is entering a new technological era. This year’s government work report set an economic growth target of 4.5 to 5 per cent and announced increased fiscal support for science and technology, including a 10 per cent funding rise for research and development and over 16 per cent for basic research. More than routine budget adjustments, these figures...
Read original on www.scmp.com ↗Negative for markets
Sentiment score: -65/100
High impact
Medium-term (weeks)
WHAT THIS MEANS
China's 'two sessions' meetings signal intensified tech competition with the US through increased R&D funding (10% rise) and basic research investment (16%+ increase), alongside a 4.5-5% economic growth target. This marks a strategic pivot toward technological self-sufficiency and innovation leadership, potentially reshaping global tech supply chains and competition dynamics.
AI CONFIDENCE
75% High
SENTIMENT GAUGE
NEWS POWER SCORE
AFFECTED ASSETS
↓
S&P 500
^GSPCIndex
Expected to decline
US tech companies face increased competition from Chinese innovation investments; semiconductor and software sectors vulnerable
⇅
IT→.MI
IT→.MIStock
High volatility expected
European tech firms caught in US-China competition; mixed exposure to both markets creates uncertainty
↓
Euro Stoxx 50
^STOXX50EIndex
Expected to decline
European tech and industrial sectors exposed to Chinese competition and potential supply chain disruptions
↓
Euro / US Dollar
EURUSDCurrency
Expected to decline
Risk-off sentiment from escalating tech tensions may weaken EUR relative to safe-haven USD
⇅
Bitcoin
BTC-USDCrypto
High volatility expected
China's tech focus may include blockchain/crypto regulation changes; geopolitical tensions increase volatility
PRICE HISTORY
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⚡ SUGGESTED ACTION
Short US tech exposure and consider defensive positioning in semiconductor/software sectors. Monitor Chinese tech stocks for potential outperformance, but hedge geopolitical risks through diversification into non-tech sectors and safe-haven assets.
KEY SIGNALS
SECTORS INVOLVED
Analysis generated on Mar 16, 2026 at 11:53 UTC
Disclaimer: This analysis is generated by artificial intelligence for informational purposes only and does not constitute financial advice, investment recommendation, or solicitation. Original reporting by SCMP Business. Always conduct your own research and consult a qualified financial advisor before making investment decisions.
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