Druckenmiller: China remains supportive of its tech
While speaking at the Economic Club on June 3, billionaire investor Stanley Druckenmiller also offered his take on the ongoing trade war between the US and China. He said that the Chinese government (FXI) remains supportive of its technology companies. It is supporting Huawei Technologies. Moreover, when the semblance of a trade war started last year, China started reducing restrictions on its tech companies such as Alibaba (BABA) and Tencent Holdings (TCEHY).
US is saving steel and aluminum at the cost of tech
The US’s approach in Druckenmiller’s view is completely opposite to this. He said the US is trying to regulate big tech companies to save steel, coal, and aluminum companies. Investors should note that the very start of the trade war between the US and China was when the US levied huge tariffs on the import of steel and aluminum into the US last March.
Druckenmiller also mentioned that the US is “throwing sand in the gears and making their life miserable.” He mentioned that if we are in conflict with other nations, it will be fought among the big technology companies, not steel or aluminum companies. If the US continues to regulate its tech companies, he warns, “we are going to get rolled.”
US tech’s suffering
Druckenmiller’s remarks are pertinent amid reports that regulators are considering investigations into whether businesses of tech companies such as Facebook (FB) and Alphabet (GOOGL) are anticompetitive. The big tech stocks are the one that are facing most of the heat in the trade war scenario. Since Trump’s May 5 tweet, the tech-heavy NASDAQ Composite (QQQ) has lost the most at 7.8% until June 5. NVIDIA (NVDA), Micron (MU), Facebook (FB), and Apple (AAPL) are leading the decline with falls of 22.8%, 23.1%, 14.0%, and 13.8%, respectively, in the same period.