Geopolitical tension with China would hit U.S. critical technology sectors hard, new study shows – By Patrick Tucker (Defense One) / Aug 31, 2023
The next major financial crisis is likely to stem from further deterioration between the U.S.-China relationship
Many of the largest tech companies in the United States are so intertwined with China that they likely would not survive a massive geopolitical crisis between the two countries, research from data services company J.H. Whitney shows.
Such a crisis would also likely bump leading tech-associated companies like Meta (parent company of Facebook) and Tesla off the list of 10 largest companies by market cap.
Whitney looked across 1,559 public companies with a market capitalization over $5 million dollars, of which, 576 were associated with one or more of 14 different critical technology areas. These include things like biotechnology, quantum science, and artificial intelligence—the same technology areas the Defense Department defines as critical to future U.S. military innovation, according to John O’Connor, the chairman and CEO of J.H. Whitney. O’Connor presented the research at an NDIA emerging technology conference this week.
