US export curbs have reshaped China’s tech scene around ‘chokepoints’: report
Chinese technology companies seeking public listings are increasingly concentrated in areas where Beijing is trying to break its reliance on foreign technology, as years of US export controls reshape the country’s pipeline of stock market hopefuls. About 20 per cent of companies that have launched initial public offerings on Shanghai’s Star Market so far this year are engaged in tackling key…
The US export curbs have reshaped China's tech scene, with companies increasingly focused on tackling key technological "chokepoints" facing the country, as per a Morgan Stanley analysis of 229 IPOs between 2022 and mid-July 2026. About 20% of companies that have launched initial public offerings on Shanghai's Star Market this year are engaged in addressing these chokepoints, compared with just 8.1% in 2022.
The focus has shifted upstream to raw materials, complex machinery, specialized parts, and core manufacturing tools, with 19 of the 21 companies identified as addressing chokepoints this year being in the semiconductor supply chain. The pressure points have expanded in recent years, with 60% of firms in 2026 contributing to China's push for supply chain self-sufficiency, up from 41% four years ago.
The report also highlights the rising R&D costs, with companies spending twice as much on research and development on average compared with their 2022 counterparts, and a significant increase in annual pre-IPO capital expenditure.
Brief written by urgent.news from South China Morning Post's own syndicated text. Machine-written — may contain errors; check the original before relying on it.
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