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Investors bet on Beijing's localisation push as US-China tech war widens

US has strengthened restrictions on China's Huawei Technologies and sanctioned China-owned apps TikTok and WeChat.

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Some market watchers warn valuations of China tech stocks are getting frothy at roughly 60 times trailing earnings, noting Chinese firms could take years to catch-up to established global players

Reuters Shanghai
As the US-China "tech war" widens, investors are betting on China's efforts to replace US technologies with indigenous applications to run networks in the state sector.

In recent months, local governments and state firms such as China Telecom have announced plans and procurements aimed at fostering a home-grown tech ecosystem to displace gear from the likes of Intel, Microsoft, Oracle and IBM.

An index tracking Chinese IT stocks has jumped nearly 30 per cent this year, doubling blue-chip gains.

"We're seeing more US actions against China, and the future tends to be 'one world, two systems'," said Wu Kan, portfolio

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First Published: Aug 20 2020 | 4:28 PM IST

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