The implications of the trade war are detrimental
The outrageous trade combat between the USA and China does not look like it will simmer down any time soon given the aggressive attacks from both sides.
The Trump administration just a few days ago blacklisted and banned the largest tech firm in China, Huawei, thus preventing the company from having any further business transactions with tech companies of American origin.
The ban is probably going to extend to additional Chinese companies as the standoff with Beijing gets more serious.
This move will only add fire to the flames of the tensions and cause a rift between these companies that rely heavily on these American companies for their tech, and those that use Chinese, potentially setting Beijing on a path to technological independence.
” Bloomberg’s Tim Culpan wrote on Sunday-
“Even the briefest of bans will be proof to them that China can no longer rely on outsiders,
“This can only accelerate the process of creating a digital iron curtain that separates the world into two distinct, mutually exclusive technological spheres.”
The standoff that led to the trade war was foreseen by many an economic pundit as the proof was in the pudding.
President Trump had welcomed Xi Jinping, Chinese President, several times over the connection, assuming the president has “taken so advantage” of the US.
The tensions finally reached a point of no return when the Chinese tech giant Huawei was blacklisted and banned.
The company was banned on account of being “linked in actions antithetical to the national security or foreign policy interests of the United States”.
The chances of Huawei being the first company to make a substantial route-way into 5G and that could very well cause a rift on the internet.