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This is easily the most suicidal idea the Trump administration has cooked up in its trade war, and that's a high bar.

In effect, this would make American technology radioactive: any company touching US software (Microsoft, AWS, etc.) becomes ineligible to do business with the world's largest economy in PPP terms. A German auto supplier using Windows? Can't sell to Chinese carmakers. A Japanese manufacturer using AWS? Too bad, you lost the Chinese market.

If this goes forward, we're likely to see global companies rushing to purge every trace of US software from their tech stacks.

Wang Yi said recently that if the US seeks to decouple from China, all it will achieve is to decouple itself from the world. This policy would vastly accelerate exactly that outcome.