>Conversely, if US based tech companies will have competition, it is likely that their value will go down a bit at one point.
Keep thinking. If US tech firms don't have much competition right now, they are not incentived to innovate or improve their products. If they had more competition, they would need to put up or shut up, rather than reaping profits from money they might otherwise spend on R&D.
Personally, I think that if you put competitive pressure on a large and lazy incumbent, they will either increase in value or fold outright. (Or convince politicians to bail them out, write protectionist legislation, etc.)
Yes, US companies will have the incentive to innovate and better themselves. But my question is just about the material outcomes: how will the shares of US and China based companies be affected.
Keep thinking. If US tech firms don't have much competition right now, they are not incentived to innovate or improve their products. If they had more competition, they would need to put up or shut up, rather than reaping profits from money they might otherwise spend on R&D.
Personally, I think that if you put competitive pressure on a large and lazy incumbent, they will either increase in value or fold outright. (Or convince politicians to bail them out, write protectionist legislation, etc.)