USA and china tech Trade war

The ongoing US and China trade war is now affecting the tech world as well. The economic and trade ties amid China and the US have been progressing rapidly over the past decades. China is the leading country from where the US imports its goods due to this trade imbalance the Trump administration imposed tariffs on Chinese products. The current ongoing blame game looks like a continuation of the so-called ongoing ‘trade war’ between the US and China.

* Ongoing US and China Trade War:

ongoing US and China Trade War
Image by: Pxhere
  • Background:

China is the biggest goods exporter to the US, and its trade deficit is increasing day by day because the US is China’s second largest exporter. Both countries affect the global market as they account for about 40% of the worldwide economy and over 22% of the tech world’s exports. To address this growing concern, the US President Trump issued a memorandum on the 22nd March 2018, which imposed USTR; a series of tariffs on the Chinese imported goods. These tariffs have reached 25% on the 1st of January 2019. All current trade tussles between the US and China link to this ongoing ‘so-called’ Trade War that the Trump administration has imposed on China.

  • Current Scenario:

Recently during the Munich security conference, the American Vice President Mike Pence accused Chinese tech giant Huawei of gathering intelligence about other countries. Pence has warned his European allies to take this threat seriously as according to Pence, Huawei and other such Chinese telecom companies are providing Beijing the access to any data that enters their networks. He also appealed the European countries to reject any Chinese enterprise that may compromise the righteousness of their communications and national security. Meanwhile, Huawei is looking for partners to build its 5G network. On the other hand, Huawei has denied all such accusations. And its CEO said during a press conference that the company would reject any demands from the government. To disclose any confidential information about its foreign customers.

  • Canadian Detention:

Canadian Detention Huawei Tech World
Image by: Flickr

The US has been manipulating against Huawei prior to it. Last year in December Canada had detained the CFO of Huawei Meng Wenzhou. She is also the daughter of the tech giant Huawei’s owner. Later from the revelation through different sources it came out. Canada had detained Sabrina Meng Wenzhou CFO of Huawei on the request of the US. The US claimed that Meng Wenzhou has violated its sanctions on Iran. And that she has misled banks and investors. However, whatever had been the case it’s quite evident that the US used Canada for gaining its interests.

  • European Response:

However, no one from the European region has recently shown any signs. That indicates that the European countries are going to buy the ‘accusations’ made by the US completely. Moreover, a recent report from Britain’s National Cyber Security Centre has further weakened the US’s blames by reporting that the ‘so-called’ security risks of using Chinese networks are manageable, and there are ways by which one can limit cybersecurity risks.

Britain is going to announce its reviewed network policies on the safety of 5G networks by the upcoming months. The updated policy will inevitably serve as a reference point in defining the future of Chinese technology in the western markets. On this point, Geng said that “China has not required from any company or individual to collect or provide information about other countries that can violate their local laws and the Chinese government is not planning for installing any backdoors that can violate laws.”

  • Chinese Perspective:

Moreover, according to Geng Shuang, a Chinese foreign ministry spokesperson. The US government is trying to create a false excuse that can suppress the proper development of Chinese enterprises. He added that the Trump administration is using “political means” to achieve its economic interests by interfering in economic activities. Which he said is “hypocritical, immoral and unfair bullying”. China justifies these accusations by saying that the US is using its state’s apparatus in every possible way to suppress and hinder the progress of Chinese high-tech companies.

Chinese Perspective Tech World Trade War
Image by: Flickr

China is also of the opinion that by pressurizing Chinese tech companies like Huawei the US is not only violating free and fair business. But the US is also violating WTO’s rules which promote free market and trade liberalization. By accelerating its aggression on Huawei, the US is trying to implement McCarthyism in the field of high-tech technology. The primary objective of which is to block and politicize Chinese businesses.

It is dragging a high-tech company into politics when it should be focusing on the development of technology. According to the Wall Street Journal, the US Department of Justice is investigating a criminal inquiry. Which may result in the conviction of Huawei for stealing trade war secrets. However, both Huawei and the DoJ has denied any such proceedings.

* Conclusion:

No matter what the reason is, Huawei is facing the wrath of Trump administration in the cold tech world war. China, on the other hand, is trying its fullest to support and protect its high-tech industry. Moreover, the European peninsula is not bothering US accusations as the US has failed to provide any proofs till date.


Please enter your comment!
Please enter your name here



This site uses Akismet to reduce spam. Learn how your comment data is processed.