⚔ Geopolitics risk-off · 1–3 years
A what‑if from the future

What if escalating US-China tech restrictions disrupt global electronics supply chains both ways?

A sharp escalation of mutual tech restrictions disrupts global electronics supply chains both ways, raising costs for Western firms while throttling Chinese tech output and employment.

12%
our model probability
over 1–3 years
prediction markets — wisdom of the crowd
loading live odds…
Empirically anchored 12% · 90% range 0–24% · 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 22% of the class10%
Pooled · weight 87%12%
Crowd — no liquid market
Reserve 3% · no extremizing (×1.0)12%
Published12%

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. A sharp escalation of mutual tech restrictions disrupts global electronics supply chains both ways, raising costs for Western firms while throttling Chinese tech output and employment. The trigger decomposes into signed root‑shocks — China growth ▼ · Inflation surprise ▲ · 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
1TSMC TSMon Hyperliquid 📈 chartEquity▼ -2.5%
hist -2.54–-0.32% · other way +0.68% (n=12)
2Nvidia NVDAon Hyperliquid 📈 chartEquity▼ -2.2%
hist -5.35–+0.28% · other way +2.74% (n=12)
3Semiconductors SMHon Hyperliquid 📈 chartEquity▼ -2.1%
hist -1.65–-0.63% · other way +0.4% (n=12)
4Nasdaq 100 NDXon Hyperliquid 📈 chartIndex▼ -1.8%
hist -1.4–-0.37% · other way -0.23% (n=12)
5ASML ASMLon Hyperliquid 📈 chartEquity▼ -1.7%
hist -2.01–-0.14% · other way -2.26% (n=12)
6Alibaba BABAon Hyperliquid 📈 chartEquity▼ -1.4%
hist -2.49–+0.14% · other way -1.3% (n=12)
7AMD AMDon Hyperliquid 📈 chartEquity▼ -1.5%
hist -2.23–+0.1% · other way -2.47% (n=12)
8Broadcom AVGOon Hyperliquid 📈 chartEquity▼ -1.5%
hist -1.06–-0.24% · other way +3.31% (n=12)
9Micron MUon Hyperliquid 📈 chartEquity▼ -1.5%
hist -0.91–-0.53% · other way -3.82% (n=12)
10Marvell MRVLon Hyperliquid 📈 chartEquity▼ -1.5%
hist -1.89–-0.07% · other way -1.09% (n=12)
11Tech sector XLK 📈 chartEquity▼ -1.2%
hist -0.96–-0.28% · other way +0.29% (n=12)
12Chinese yuan CNY 📈 chartFX▼ -1.0%
hist -0.94–-0.16% · other way -0.13% (n=12)
13Qualcomm QCOMon Hyperliquid 📈 chartEquity▼ -1.0%
hist -3.9–+0.9% · other way -4.59% (n=12)
14Intel INTCon Hyperliquid 📈 chartEquity▼ -0.8%
hist -3.2–+0.79% · other way -4.36% (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 August 2022 hot CPI 2022-09 Powell's hawkish 'pain' speech at Jackson Hole 2022-08 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 Turkish lira record low on rate cuts 2021-11 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 February 2018 hot wage print triggers rate scare 2018-02 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
AssetHistory saysAbnormal (20d · 5d)HitnConfidencevs cascade
NVDA NVDASHORT-3.8% · 5d -3.2%73%40 0.34✓ matches cascade
Volatility VIXSHORT-2.4% · 5d +2.5% ↺ fades67%40 0.28⚠ differs
BABA BABASHORT-1.6% · 5d -2.7%65%39 0.27✓ matches cascade
KWEB KWEBSHORT-2.4% · 5d -1.8%65%39 0.27✓ matches cascade
ETH ETHSHORT-5.8% · 5d -6.7%65%35 0.24✓ matches cascade
SOL SOLSHORT-9.8% · 5d -11.8%65%26 0.22✓ matches cascade
USDJPY USDJPYSHORT-0.2% · 5d -0.4%61%40 0.19⚠ differs
30y yield DGS30LONG+3bp · 5d +3bp60%40 0.16✓ matches cascade
10y yield DGS10LONG+3bp · 5d +3bp60%40 0.16✓ matches cascade
TSM TSMSHORT-1.2% · 5d -2.2%60%40 0.15✓ matches cascade
QCOM QCOMSHORT-3.1% · 5d -2.9%60%40 0.15✓ matches cascade
INTC INTCSHORT-2.6% · 5d -1.8%58%40 0.14✓ matches cascade
Bitcoin BTCSHORT-3.2% · 5d -4.3%59%39 0.14✓ matches cascade
NDX NDXSHORT-0.5% · 5d -1.1%60%40 0.13✓ 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.