Why China May Need to Break Up Some Big Businesses

US-China Trade & Tech Restrictions - Expectation of a shift from broad-based sanctions on semiconductors to more targeted measures [1] - US imposed export restrictions on H-20 chips potentially impacting $4.5 billion in sales [2] - China restricted magnets impacting electric vehicles and smartphones [2] - US retaliated by blocking Leap One SEE engines used by CarMax jets [3] - Specific Chinese companies compete directly with American counterparts in chips, aerospace, defense, critical minerals, and telecommunications [5] - China is the leading trade partner to over 140 countries [7] National Security & Industry Competition - Key verticals where Chinese competition poses a direct threat to American technological leadership include chips, aerospace and defense, critical minerals supply chains, and telecommunications [5][6] - Some Chinese e-commerce and entertainment companies have been embroiled in national security concerns [7][8] - China is disaggregating large businesses to facilitate targeted sanctions [9] Supply Chain & Manufacturing - US needs to unlock natural resources to ensure American national security [14][15] - Resurgence of American aerospace and defense is attributed to the Trump administration's efforts to remove barriers to growth [13][14] - Reinforcement of American supply chains is needed to reduce dependence on Chinese inputs [12]