🧠 Technology & AI risk-off · 1–3 years
A what‑if from the future

What if the US bans outbound investment in Chinese AI and semiconductors?

Sweeping US outbound-investment restrictions on Chinese AI, semiconductors and quantum cut off capital and know-how, throttling China's tech sector and bifurcating the global tech ecosystem.

15%
our model probability
over 1–3 years
prediction markets — wisdom of the crowd
loading live odds…
Empirically anchored 15% · 90% range 1–29% · 40 analogues · measured class supply_chain 46% in 3 yr · 3% held back for the unknown
how we built this number — every step
Measured class rate — supply_chain ≈0.2052/yr → 46% in 3 yr46%
Analyst prior · editorial share 30% of the class14%
Pooled · weight 87%15%
Crowd — no liquid market
Reserve 3% · no extremizing (×1.0)15%
Published15%

The class rate is measured from our dated, sourced event library (decade-normalized Poisson — the full table is public at base_rates.json). The variant’s share within its class is the analyst’s editorial call, published so you can audit it. A wider range means thinner precedent. Full recipe: methodology · scored at Reality Check.

The butterfly cascade

How this trigger trickles across markets, left → right — the root shock, its first‑order moves, then the ripple effects. Drag any node; tap a market for its real price history.

Resolution timeline — how this probability is moving

Our model's odds (gold) over time vs the crowd's (Polymarket, blue), from the past toward the 1–3 years horizon. Each dot is a real macro event that nudged the probability — green pushed it up, red pushed it down. Tap a dot for the source. The gold path is an illustrative reconstruction anchored to today's estimate — real dated events, not a live re-estimate history.

loading the timeline…

What it would mean

If this plays out, it is a risk-off shock. Sweeping US outbound-investment restrictions on Chinese AI, semiconductors and quantum cut off capital and know-how, throttling China's tech sector and bifurcating the global tech ecosystem. The trigger decomposes into signed root‑shocks — AI capex ▼ · China growth ▼ · Semiconductor supply risk ▲ · Trade tension ▲ — which propagate through our causal graph to the markets below.

If it happens — the markets it would move

Biggest moves first. Projected moves are cascade-model priors; hist A–B% = what comparable past events actually did (measured abnormal returns), and model prior · unmeasured marks markets with no analogue backing yet. Tap any market for its price history.

MarketClassProjected move
1Nvidia NVDAon Hyperliquid 📈 chartEquity▼ -2.8%
hist -5.65–+0.08% · other way +3.5% (n=12)
2TSMC TSMon Hyperliquid 📈 chartEquity▼ -2.7%
hist -2.44–-0.54% · other way +1.45% (n=12)
3Semiconductors SMHon Hyperliquid 📈 chartEquity▼ -2.4%
hist -2.01–-0.63% · other way +1.12% (n=12)
4Broadcom AVGOon Hyperliquid 📈 chartEquity▼ -1.9%
hist -1.18–-0.52% · other way +5.25% (n=12)
5Micron MUon Hyperliquid 📈 chartEquity▼ -1.9%
hist -3.73–+0.49% · other way -2.96% (n=12)
6ASML ASMLon Hyperliquid 📈 chartEquity▼ -1.8%
hist -2.25–-0.13% · other way -1.92% (n=12)
7Nasdaq 100 NDXon Hyperliquid 📈 chartIndex▼ -1.8%
hist -1.9–-0.17% · other way -0.15% (n=12)
8AMD AMDon Hyperliquid 📈 chartEquity▼ -1.7%
hist -3.56–+0.56% · other way -1.89% (n=12)
9Marvell MRVLon Hyperliquid 📈 chartEquity▼ -1.7%
hist -2.94–+0.33% · other way -1.04% (n=12)
10Alibaba BABAon Hyperliquid 📈 chartEquity▼ -1.4%
hist -1.97–+0.02% · other way -1.5% (n=12)
11Tech sector XLK 📈 chartEquity▼ -1.2%
hist -1.11–-0.21% · other way +0.36% (n=12)
12Qualcomm QCOMon Hyperliquid 📈 chartEquity▼ -1.1%
hist -4.32–+0.96% · other way -3.99% (n=12)
13Chinese yuan CNY 📈 chartFX▼ -1.0%
hist -0.82–-0.23% · other way -0.09% (n=12)
14Intel INTCon Hyperliquid 📈 chartEquity▼ -0.9%
hist -3.98–+0.9% · other way -3.27% (n=12)

Probable recommendation

If the scenario above plays out, the probable cross‑asset positioning → a scenario‑conditional read, not personalized investment advice
Cash / hedgeRaise cash and hold the long hedges above; this scenario is net risk-off.
For a common-man portfolio: A typical stock-heavy portfolio is at risk. Consider trimming equities, raising cash, and a small cash hedge.
Also moves (not yet on Hyperliquid): Tech sector -1.2% · Chinese yuan -1.0% · Freeport (copper) -0.7% · Aussie dollar -0.5% · Turkish lira -0.3% · Indian rupee -0.2%

Historical precedent — what analogous events actually did

Across 40 analogous events (overlap‑weighted), as abnormal returns — market beta stripped, so it's the event's own effect, not the market backdrop. Shown at 20 days (persistent) and 5 days (immediate); ↺ fades = the two horizons disagree. Confidence = consistency × sample × significance.

China retaliates to Liberation Day: 34% tariffs + rare-earth controls 2025-04 ASML bookings-miss crash 2024-10 Didi removed from China app stores after NYSE IPO 2021-07 Chinese yuan breaks 7 per dollar; US names China manipulator 2019-08 Record $19bn crypto liquidation cascade 2025-10 US-China extend tariff truce by another 90 days 2025-08 US and China agree Geneva tariff truce, slashing rates 2025-05 Gold tops $3,000 for the first time amid tariff and rate-cut fears 2025-03 TSMC slumps as DeepSeek roils AI-chip demand assumptions 2025-02 Micron's weak FQ2 guidance sparks a sharp December selloff 2024-12 Megacap AI-capex doubt selloff 2024-07 Trump 'Taiwan should pay for defense' chip selloff 2024-07 China imposes gallium and germanium export controls 2023-07 Alibaba announces historic split into six business units 2023-03 Offshore yuan hits a record low 2022-11 China fires ballistic missiles into Japan's EEZ during Taiwan drills 2022-08 Netflix subscriber-loss crash 2022-04 Alibaba upsizes buyback to record $25 billion 2022-03 Meta 2022-02 Kaisa Group offshore default 2021-12 Evergrande debt crisis - global selloff 2021-09 Bitcoin May 2021 crash 2021-05 Ant Group's record $34.5B IPO suspended 2020-11 Jack Ma's Bund Summit speech attacking China financial regulators 2020-10 Huawei added to Entity List + ICT executive order 2019-05 Apple cuts revenue guidance on China weakness 2019-01 Nvidia crypto-glut guidance crash 2018-11 US List 3 tariffs on $200B of Chinese goods finalized 2018-09 US Section 301 List 1 tariffs take effect on China 2018-07 China retaliates: $50B tariff list incl. soybeans 2018-04 US Section 232 steel & aluminum tariffs imposed 2018-03 Mexican peso crash on Trump 2016 win 2016-11 China stock-market circuit-breaker fiasco 2016-01 August 24, 2015 ETF flash crash 2015-08 Shanghai A-share bubble peak / crash begins 2015-06 China curbs rare-earth exports to Japan 2010-09 October 27, 1997 mini-crash 1997-10 Asian financial crisis - Thai baht float 1997-07 Tiananmen Square crackdown 1989-06 Hong Kong Stock Exchange four-day closure after Black Monday 1987-10
AssetHistory saysAbnormal (20d · 5d)HitnConfidencevs cascade
NVDA NVDASHORT-3.8% · 5d -3.2%75%36 0.37✓ matches cascade
ETH ETHSHORT-6.5% · 5d -7.2%67%31 0.28✓ matches cascade
SOL SOLSHORT-11.3% · 5d -12.6%69%23 0.27✓ matches cascade
KWEB KWEBSHORT-2.0% · 5d -1.8%64%35 0.25✓ matches cascade
Volatility VIXSHORT-1.1% · 5d +0.1% ↺ fades65%38 0.25⚠ differs
NDX NDXSHORT-1.0% · 5d -1.5%64%40 0.22✓ matches cascade
BABA BABASHORT-1.2% · 5d -2.6%61%35 0.20✓ matches cascade
INTC INTCSHORT-3.2% · 5d -2.7%61%40 0.20✓ matches cascade
COIN COINSHORT-2.0% · 5d -0.9%60%21 0.17✓ matches cascade
AVGO AVGOSHORT-0.2% · 5d -2.4%59%36 0.16✓ matches cascade
QCOM QCOMSHORT-3.4% · 5d -3.1%60%38 0.16✓ matches cascade
USDJPY USDJPYSHORT-0.1% · 5d -0.6%59%38 0.16⚠ differs
Bitcoin BTCSHORT-3.8% · 5d -4.2%59%35 0.15✓ matches cascade
XLK XLKSHORT-0.4% · 5d -0.8%59%36 0.14✓ matches cascade

Methodology. Probability and impact are anchored to history and scored against what actually happens — wins and losses, in public, at Reality Check. Crowd odds live from Polymarket & Kalshi. By Vikas Singh, Quantitative Strategist. Updated 2026-07-03.