US-China trade relations, cooperation strategy. Flags of the USA, America and China on a chess king on a chessboard.

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The U.S. is likely to impose more restrictions to stop competition from China as “unbundling is really in full force,” said Stephen Okun, founder and chief executive of consultancy APAC Advisors.

“The question is to what extent and how widely it will be,” Okun told CNBC’s “Street Signs Asia” on Monday.

Last week, lawmakers voted 50-0 in favor of a bill that would have required China’s ByteDance to divest from TikTok or risk the US banning the popular video app. House Speaker Mike Johnson told reporters that a bill to sell TikTok would be introduced on Wednesday.

“While owned by ByteDance and therefore required to cooperate with the Chinese Communist Party, TikTok poses a critical threat to our national security,” according to press statement by the Special Committee of the Chinese Communist Party.

The committee wants a “reset,” China Okun said.

“You prevent China from accessing the American market, particularly where the party can have some kind of control, and then you build at home instead of relying on China. So it’s just part of a broader strategy,” he added.

In recent years, the US has stepped up pressure on Chinese companies, particularly in the semiconductor, electric vehicle and biotech sectors.

“This will apply to electric cars. I think it will apply to the wider renewable sector. It will certainly apply in biotech – I think that’s the sector you want to watch next.”

The US Senate voted earlier this month to approved a bill that could restrict business with Chinese biotech firmssuch as WuXi AppTec and BGI, regarding national security concerns.

China is seen as a threat to the US auto industry as US auto exports decline and companies such as General Motors shut down international operations.

China could flood the U.S. electric vehicle market with its offerings, Energy Secretary Jennifer Granholm warned last week. “We are very concerned about China taking over our US industry”

The White House said last month The US investigated whether importing Chinese vehicles poses a national security risk because it can collect sensitive data on American citizens and infrastructure and send it to China.

Chinese Foreign Minister Wang Yi told reporters last week that the US was devising “new ways to suppress China”, saying US accusations against China had reached an “unbelievable level”.

In October 2022, the US introduced rules aimed at blocking China’s access to high-tech semiconductor chips and chip-making equipment amid concerns that China could use them for military purposes.

A year later, the US said it would introduce more restrictions to fill the gaps left by the 2022 export restrictions on AI chips.

“If that [U.S.] stubbornly monopolizes the high end of the value chain and keeps China at the low end, where is the fairness and competition?” Wang said.

— CNBC’s Evelyn Cheng and Clement Tan contributed to this story.