China's Once-Booming Tech Sector Hits Some Obstacles
*By Bridgette Webb*
As the U.S. tech sector regained some of its footing Tuesday, last week's tech sell-off continues to undermine some of China's tech bellwethers Tencent and Alibaba.
Sara Hsu, economist and associate professor at SUNY New Paltz, said that unlike Facebook and Twitter, hamstrung by slower-than-expected user growth, Chinese tech stocks have more serious investment hurdles ahead.
"There are concerns of a trade war, that it could possibly dampen investment from the United States," Hsu said in an interview Tuesday with Cheddar. "Particularly for Tencent and Alibaba which have a lot of interest in the United States, in terms of trade and investment."
The trade spat between Washington and Beijing has not only quelled investors’ appetites, it has also discouraged Chinese tech giants from expanding internationally.
Alibaba's Founder, Jack Ma, had pledged to create 1 million jobs in the U.S. and increase the amount of goods that ship from America to China.
Hsu said that China's tech stocks are also faced with tightening liquidity and currency depreciation.
"There are depreciation pressures on the Chinese currency which is going to affect the earnings report for companies that are listed on the New York Stock Exchange," she said.
The Chinese [Renminbi](https://www.ft.com/content/047ca2d6-8ee2-11e8-b639-7680cedcc421) has slipped in the past two months and hit its lowest level in more than a year, despite measures by central bankers in Beijing to support China’s currency.
For more on this story, [click here](https://cheddar.com/videos/u-s-tech-selloff-wave-hits-chinas-shores).
President Donald Trump is talking up a joint venture investing up to $500 billion for infrastructure tied to artificial intelligence by a new partnership formed by OpenAI, Oracle and SoftBank. The new entity, Stargate, will start building out data centers and the electricity generation needed for the further development of the fast-evolving AI in Texas, according to the White House. The initial investment is expected to be $100 billion and could reach five times that sum. While Trump has seized on similar announcements to show that his presidency is boosting the economy, there were already expectations of a massive buildout of data centers and electricity plants needed for the development of AI.
Chris Ruder, Spikeball Founder and CEO, explains how he and his friends put roundnet on the global map, plus, how Spikeball helps people "find their circle."
J.W. Roth, CEO of Venu Holding Corporation, discusses the company's IPO and plans to redefine live music entertainment with their fan founded, fan-owned model.
Variety's Clayton Davis discusses why more than just the 1% are struggling after the LA fires. Plus, how awards shows will pivot to help victims. Watch!
Emily Hosie, CEO of Rebelstork, explains the concept of Returns Recommerce, plus how her company raised $18M to address the industry-wide issue of returns.
