China has announced guidelines that could block American chipmakers Intel (INTC) and AMD (AMD) from operating in government servers within the country. The move comes as TikTok faces a potential ban in the United States. Founder and Chief Investment Officer at Bokeh Capital Partners Kimberly Forrest joins Yahoo Finance Live to discuss why she believes this announcement is a "tit for tat" scenario.
Forrest notes that China's new policy "reflects last week's TikTok announcement," which she believes is the Chinese government's way of "matching" American efforts to regulate some of its most popular products. However, she states that the possibility of either of these announcements being fully implemented is "very unlikely," describing the situation as "political positioning."
Forrest advises investors to separate the political factors when determining whether to invest in these companies. She emphasizes that what politicians want to happen may not always align with what is actually feasible.
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