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Monday's Selloff and the Case for "IP Theft" Reform

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  • (0:25) - Stock Market Sell Off: Trade War Concerns Continue
  • (2:45) - Business Practices of China: Are They Unfair?
  • (5:45) - Apple Competing In Chinese Market

On today’s episode of the Tech Talk Tuesday podcast, Ryan McQueeney discusses Monday’s stock market selloff and explains why President Trump’s latest trade war maneuver might be a response to intellectual property issues between U.S. tech companies and China’s top competitors.

Remember to subscribe and leave a rating on Apple Podcasts if you enjoy the show!

U.S. stocks moved sharply lower on Monday after reports suggested President Trump is ready to both block Chinese companies from making investments in American tech, and impose restrictions on additional tech exports to China.

The selloff hammered popular tech stocks like Micron (MU - Free Report) , Alphabet (GOOGL - Free Report) , Netflix (NFLX - Free Report) , and Nvidia (NVDA - Free Report) .

After focusing for months on industrials and manufacturing, the Trump administration is finally zeroing in on China’s technology sector, and that’s likely a response to something we have actually been talking about for years: intellectual property theft.

China’s markets have been open to foreign businesses for some time now, but the Chinese government has not always created a level playing field for international competitors. In fact, one controversial practice mandates that foreign businesses share their proprietary technology with a Chinese business partner before they are able to enter the market.

Add this to frequent copying of popular brands and suspicious cybercrime which targets foreign trade secrets, and it is clear to see why U.S. companies might have a problem with China’s IP practices.

Ryan does his best to explain exactly why President Trump and many U.S. businesses have an issue with this situation, while also suggesting that a tit-for-tat trade war is likely not the best response.

Make sure to check out the show to hear exactly what he has to say!

As a reminder, if you feel that we missed something, or if you want us to cover a different story, shoot us an email at podcast@zacks.com. Make sure to check out all of our other audio content at zacks.com/podcasts, and remember to subscribe and leave us a rating!

As always, thanks for listening to the Zacks Tech Talk Tuesday Podcast; we will see you next time!

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