US-China tech rivalry adds to headaches for stock investors

China’s heated rivalry with the US over tech supremacy is adding fresh pain points to the world’s second-largest stock market, as the Biden administration steps up efforts to reduce economic reliance on the Asian nation.

From biotech to electric vehicles, shares of China’s key manufacturers have seen heavy selling recently as US initiatives to secure domestic supply chains and solidify its industrial superiority raised uncertainties for Chinese firms. The MSCI China Index has fallen more than 7% this month, versus a 2.5% drop in the global gauge.