The tech sector could face more 'disruptive' policies if Republicans take control of Congress

The U.S. midterm elections could pb to "disruptive changes" successful U.S. tech policies if the Republicans instrumentality power of Congress, according to an analyst.

Though some Republican and Democratic candidates are pledging a pugnacious attack connected China successful a bid to triumph voters who presumption China arsenic a menace to nationalist and occupation security, the Republicans are apt to instrumentality a much hawkish stance.

"What the Republicans and Democrats are wholly aligned connected is simply a pugnacious attack connected China. One country wherever they are little aligned connected is getting multilateral partners to hold [on the stance toward China]," said Martin Chorzempa, elder chap astatine Peterson Institute for International Economics, connected CNBC's "Squawk Box Asia" connected Wednesday, erstwhile asked astir however the result of the midterm predetermination mightiness impact U.S.-China relations.

"A batch of Republicans deliberation that is simply a discarded of time. They whitethorn conscionable privation to spell with it alone, but past that creates a batch of friction with the U.S. allies and mightiness pb to much dislocative, disruptive changes successful the tech policies," said Chorzempa, who cited "techno-nationalism" arsenic a hot-button issue.

Just past month, the U.S. announced export controls restricting China's entree to circumstantial types of precocious semiconductor chips, a determination that crimps Chinese companies' entree to cardinal tech.

Companies volition necessitate a licence if they usage American tools to nutrient definite precocious computing semiconductors oregon related manufacturing instrumentality for merchantability to China.

One of the large challenges that the tech assemblage faces is the friction betwixt the U.S. and China, which is "pulling companies successful antithetic directions and perchance fracturing the planetary Internet, multinational firms that privation to bash concern successful the U.S. and China," said Chorzempa.

But semiconductor companies successful Taiwan and South Korea whitethorn payment from a Republican legislature sweep, according to probe steadfast Natixis.

"There are a batch of uncertainties connected whether determination volition beryllium a alteration if the Republicans instrumentality the location oregon some Senate and House," said Natixis' elder economist Gary Ng during CNBC's "Squawk Box Asia" connected Wednesday.

"Increasingly, we are seeing this tougher attack from the U.S., particularly from the Republicans, with greater scrutiny of proviso concatenation successful tech, particularly precocious tech," said Natixis' elder economist Gary Ng during CNBC's "Squawk Box Asia" connected Wednesday, adding that the unit volition lone proceed to grow.

"If determination is much regularisation connected Chinese firms, it means determination volition beryllium much country for maturation for [semiconductor companies in] Taiwan, oregon progressively adjacent from Korea and Japan arsenic well," added Ng.

However, successful an interrogation astir the spot export curbs with CNBC's "Squawk Box Asia" past month, Sarah Kreps of Cornell University said the U.S. should support the "bigger picture" successful caput arsenic it tries to hedge against China, and that it is "putting its East Asian allies astatine a disadvantage."