GZERO VIDEO: Will China's tech sector be held back by Beijing's latest moves?

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NEW YORK (GZERO MEDIA) - A broader technology split between the United States and China is on the horizon, says US political scientist Ian Bremmer.

Beijing's recent moves to curtail Chinese tech companies will erode the firms' independence and their competitive edge as the government exerts more control over them, according to Mr Bremmer.

The Cyberspace Administration of China this month launched a cybersecurity investigation into ride-hailing app Didi Chuxing just days after it started listing on the New York Stock Exchange. The watchdog has also opened probes into other US-listed Chinese tech firms.

The moves, Mr Bremmer says, will reduce the Chinese firms' ability to attract international talent, ultimately resulting in a less efficient, less competitive tech sector in the country.

US tech firms, on the other hand, tend to be more traditional multinational corporations often focused purely on their shareholders, with individual tech CEOs increasingly exerting outsized influence in America and online.

As Beijing tightens its grip over its tech firms, Mr Bremmer foresees more Chinese tech companies aligning themselves with the Chinese government, and fewer of such firms having access to American investment and shareholders.

There will also be fewer US tech firms with access to the Chinese market.

With less integration and interdependence, the result is a broadening split between the world's two technology superpowers.

While China's present direction may support political stability in the country in the short-term, Mr Bremmer argues that it will ultimately undermine the productivity and growth of the Chinese tech sector.

The developments and their consequences will have a critical impact not just for China but also for the US and the rest of the world, in time to come.

This GZERO media video is being shown here as part of a media partnership agreement with The Straits Times.

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