StartupTalky

Tag: usa china

  • Trump Urges Intel CEO Lip-Bu Tan to Resign Over Alleged China Ties

    The CEO of the US chipmaker Intel has been urged by President Donald Trump to step down “immediately” after being accused of having problematic ties to China. He said that CEO Lip-Bu Tan was “highly conflicted” in a social media post, seemingly alluding to Mr Tan’s purported interests in businesses the US claims have ties to the Chinese military.

    It is uncommon for a president to order a company CEO to quit. Mr Tan was brought on board in March with the goal of revitalising the tech giant, which was a pioneer in the US chips sector but has recently lagged behind rivals. As part of the endeavour to revive America’s semiconductor manufacturing sector, the US government has given it billions of dollars. Intel said in a statement on 7 August that it was supporting Trump’s “America First agenda” by making large investments in the US.

    According to Intel, Lip-Bu Tan, the Board of Directors, and the firm are all steadfastly dedicated to furthering the economic and national security objectives of the United States. The business went on to say that it anticipates continuing to work with the administration.

    Intel Limiting its Footprints in USA

    Mr Tan, a venture capitalist renowned for his proficiency in the semiconductor sector, is a naturalised US citizen who was born in Malaysia and brought up in Singapore.

    In a recent update to investors, he stated that in order to meet consumer demand, the company would be reducing its production investments, including those in the US. In an attempt to “right-size” the company, Intel has already laid off thousands of employees this year.

    Stock Market Reacts to Trump’s Comments

    Trump, who has previously criticised the company and is planning to increase taxes on the semiconductor industry, attacked Intel, causing its shares to drop more than 3% by midday. Trump stated that Intel’s CEO is extremely conflicted and ought to step down right away. This problem can’t be solved in any other way. But, as both Democrats and Republicans publicly express concerns about national security, Washington has tightened restrictions since Trump’s first term, pushing to sever commercial links between the US and China in the area of advanced technology.

    National Security Concerns Intensify

    Republican Senator Tom Cotton expressed worries about Trump’s criticism in a letter to Intel’s board this week, stating that Mr Tan’s affiliations cast doubt on Intel’s capacity to manage American taxpayer funds responsibly and adhere to relevant security laws.

    Cotton cited Mr Tan’s position as the long-time CEO of Cadence Design Systems, a tech company that entered a guilty plea in July and agreed to pay $140 million to the US over allegations that its Chinese subsidiary had violated US export controls by repeatedly doing business with the nation’s National University of Defence Technology.

  • US Treasury Chief: China Must Take Lead in De-escalating Trade Tensions

    Scott Bessent, Secretary of the Treasury, has made it clear that easing current trade tensions is the responsibility of China. In an interview with CNBC’s Squawk Box, Bessent explained that the trade relationship between the US and China is heavily tilted in China’s favor, with it selling five times more goods to the US than it gets in return. He highlighted the steep tariffs, 120% to 145%, are unsustainable and suggested that China take some steps toward making the trade relationship a little more balanced. That, he said, would de-escalate the current situation, which is in China’s best interest.

    Market uncertainty has been heightened by President Donald Trump’s announcement in early April of global tariffs affecting pretty much all trade partners. Although the metal tariffs have been put on hold for 90 days while negotiations are carried out, the pressure is very much on for talks to produce something that all sides can live with.

    Signs of Progress with Other Trading Partners

    Although there are many problems with China, Bessent had a much more optimistic view of our other trade partners. He said that the U.S. has been given very promising signals from a number of countries and expects to see new trade agreements with them very soon. One country he seemed to suggest could be a front-runner for announcing a deal was India. He indicated that developments concerning a trade agreement with India might be announced in the next few days.

    Currently, about 15 to 18 major trading relationships are under negotiation. Bessent said that many countries have put forward very strong proposals, and the administration is taking a close look at them. His remarks suggest that even as the China situation looms large, steps taken with other countries could, in the end, serve to cushion the U.S. economy.

    Europe Grapples with a Strong Euro

    Focusing on Europe, Bessent proposed that the region’s monetary policymakers are expressing heightened concern over the euro’s strength against the U.S. dollar. Since the onset of 2014, the euro has appreciated almost 10%, reversing dangerously close to parity levels in early January, not to mention the sort of levels that almost got European leaders to endorse currency interventions back in 2012.

    He forecast that the European Central Bank might have to reduce interest rates to combat the euro’s ascent. While the US keeps a strong-dollar policy, European countries are probably looking for ways to maintain their currency’s value in a fast-changing global market.

    The recent status of the trade discussions with China is a bit murky, and the White House has sent out some mixed signals. President Trump has suggested that the talks are indeed continuing, which China has refuted.