US’ ‘unprecedented’ move to take a 15 per cent cut of some chip sales to China creates new risks and conflicts of interest, analysts warn.
US President Donald Trump’s “unprecedented” deal to allow exports of some advanced chips to China in exchange for a cut of the revenues – and hints that similar deals for other industries are being considered – signals that Washington is moving towards a potentially dangerous “pay to play” foreign trade policy, analysts said.
Conflicts of interest loom if the revenue-sharing model takes root, which could make it harder for American investors and exporters to do business in the world’s second-largest economy, they added.
