US export controls on technology exports to China have backfired, hurting US technology companies, and have been unsuccessful in cutting China off from the technology, thus driving innovation in China’s technology sector, according to a report from the Federal Reserve Bank of New York. ‘The US has imposed export controls to deny China access to strategic technologies [but] we find no evidence of reshoring or friend-shoring. As a result of these disruptions, affected suppliers have negative abnormal stock returns, wiping out $130bn in market capitalisation, and experience a drop in bank lending…