In a recent interview with Bloomberg, Ark Invest founder and CEO Cathie Wood shared her perspective on Trump's H-1B visa cuts. While the move is generally interpreted as targeting Chinese and international students, Wood argues that Trump is actually using H1B visas as a political bargaining chip in US-India negotiations. She emphasized that Silicon Valley's high-tech industry relies heavily on Indian engineers, and the new policy will have a particularly profound impact on this population.
Wood also analyzed the competitive landscape between the US and Chinese tech industries, believing this competition has in fact spurred more innovation and investment opportunities in the capital markets. She also shared her views on TikTok, arguing that Trump's push for American companies to acquire TikTok is a key and effective case in US-China negotiations, symbolizing his proactive approach to younger Americans.
New H-1B visa policy provides leverage in negotiations between the US and India
Cathie Wood believes Trump's H-1B visa restrictions are part of ongoing negotiations with India. She noted that the new policy will not only impact India's tech workforce but also significantly impact US tech companies and their talent strategies. Wood stated that the new measures may force tech companies to operate more efficiently in the short term to address talent shortages, but that in the long term, further negotiations between India and the US may ultimately lead to a relaxation of H-1B visa policies.
Wood added that the success of many Silicon Valley startups relies on a global talent pool, much of which comes from overseas, particularly India. Restrictions on this foreign workforce could have a significant impact on innovation and technology companies in Silicon Valley. On the other hand, Wood also pointed out that with the advancement of artificial intelligence technology, traditional programming jobs will gradually be replaced by automated tools, further changing the market demand for technical talent.
The fierce competition between the United States and China in the AI field can further promote technological progress.
Discussing the future of Chinese tech stocks, Wood noted China's astonishing development in open-source software. She believes the significant advances made by Chinese tech companies in open-source AI are driven by US technological blockades, particularly regarding intellectual property protection. Despite this, Wood believes such competition is actually a positive development for the US, fostering interaction and progress in the technological field between the two countries.
TikTok consolidates its base among young Americans
Regarding TikTok, Wood believes the US government's demand that ByteDance sell TikTok is a unique situation, not the norm. She noted that Trump's shift in attitude toward TikTok stems more from political considerations during the election. He recognizes TikTok's importance among young Americans, making its position in the US market difficult to challenge. She believes that TikTok's transformation into a US-owned company has become a symbolic success in US-China negotiations.
At the end of the interview, Wood emphasized that Ark's continued investment in startups that are undervalued by the market has always been its investment strategy. She said that Ark's success lies in its forward-looking analysis of technology trends. From Bitcoin and Tesla to Palantir and Coinbase, Ark has been investing in startups that are undervalued by the market.
The article " Female stock god Cathie Wood: Trump's reduction of H1B visas is a bargaining chip in negotiations between the United States and India" first appeared in ABMedia ABMedia .
