Disney, Apple and other U.S. companies will face the worst problems with the “selective separation” of companies from the Chinese economy. Republican Congressman Mike Gallagher, head of the U.S. House of Representatives’ special committee on strategic competition with the Communist Party of China, told Bloomberg.

“Apple is at the center of the most difficult aspect of the rivalry, which is that companies with a broad presence in China will have to come to terms with the fact that some form of selective economic separation is inevitable,” Gallagher said.

Confrontation between China and the U.S.

A complete break with China, despite rising tensions with it, will not happen anytime soon, the member of congress assured. Instead, they said, there would be a “selective separation,” during which some supply chains of sensitive components would be phased out of China, creating problems and extra costs for private businesses. The only scenario in which there would be no separation would be if China used military force against Taiwan, the member of congress said.

He said the companies wished to receive “clear guidance” from the U.S. government on areas of the Chinese economy that should be shunned. They also expressed “almost unanimous” support for U.S. restrictions on investment in Chinese AI development, quantum computing, bioengineering, advanced conductors, and other dual-use technologies.

Gallagher and his fellow members of congress previously met with Apple CEO Tim Cook and Disney CEO Bob Eiger, executives from Google, Microsoft, Palantir Technologies (owned by Alphabet), several prominent venture capitalists and representatives from Hollywood. The conversation with Eiger and filmmakers focused on concerns about American companies intentionally censoring their content for the Chinese market, and the members of congress wanted to hear from businessmen.

Earlier, we reported that experts predicted a new rally in Big Tech stock.