Home World The trade dispute between the US and China is turning … into a global technology war

The trade dispute between the US and China is turning … into a global technology war

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The trade dispute between the US and China is turning … into a global technology war

trade war USAChina It “raged” for years, spearheading tariffs, restrictions, and sanctions, while moving through the realm of “practical” trade (in this case, due to ties imposed in 2018 by the administration Trump in imported Chinese solar panels, washing machines, steel and aluminum cargo) in the field of commercially valuable new technologies and communications.

HOURIt was in February 2018, exactly five years ago, when O FBI Director Chris Wray sounded the alarm when he told the US Senate Intelligence Committee that Chinese companies Huawei And ZTE and their products pose a “threat” to the US.

There was much to follow along the way:

  • The Pentagon has banned the sale of Huawei and ZTE mobile phones to US military personnel. The use of such devices on US military bases was also prohibited.

  • Meng Wangzhou, Huawei’s chief financial officer, was arrested in Canada on a US warrant.

  • The US Department of Justice took action against Huawei, accusing it of stealing trade secrets, obstruction of justice and fraud.

  • US authorities have launched a campaign to bar Western allies from any Chinese involvement in the development of national 5G networks.

  • Google has excluded Huawei phones from Android OS updates (after 2019).

  • Trump, by presidential decree, banned American companies from doing business with foreign companies that are considered a threat to US national security, thereby excluding Huawei from the US market, etc.

Along the way, of course, many of the announced decisions will also be overturned in negotiations and legal battles when Meng Wangzhou is finally released after three years in prison, and some of the US restrictions on Chinese companies are eased… before they come back stronger. .

New restrictions

“The United States has banned the sale and import of new communications equipment from five Chinese companies (including: Huawei, ZTE, Hikvision, Dahua, Hytera) for reasons of national security,” the BBC wrote in November last year, citing the corresponding “unanimous” decision, members of the previous to the US Federal Communications Commission (FCC).

But more recently, according to recent reports (FT, Bloomberg, Associated Press), “the government Biden did not approve the renewal of export licenses for US companies that sold Huawei components.” “…new restrictions could block Huawei’s access to chips and other technologies as major US companies such as Intel and Qualcomm will be forced to restrict their trade with them,” he notes in an AP article.

However, in 2022, after taking over the baton of Sino-US rivalry from Trump (who famously took over from Obama), the Biden administration will also pass new legislation (see banning US companies from exporting semiconductors and semiconductor manufacturing equipment to China, and also banning US citizens from working for Chinese semiconductor companies.

“What US CHIPS Act has two main goals: to increase the resilience of the supply chain (sb: America-West) and to strengthen the defense against the advances of China (sb: in microchip technology) in light of national security,” the Brookings Institution notes in its analysis.

chips law is an industrial policy to compete with China by acting as a catalyst for chip innovation to be produced within US borders,” notes the Carnegie Endowment for International Peace in its own analysis.

In simple terms, this is a plan, the purpose of which is, on the one hand, to strengthen domestic American production of microcircuits, and on the other hand, to make it difficult for China to access relevant advanced technologies.

Japan, Holland and India sided with the US

However, in this regard, the United States needs … allies with experience, developed infrastructure and trade/export leverage.

Author: George Skafidas

Source: Kathimerini

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