The United States has issued a new regulation aiming to limit chip exports to Chinese tech giant Huawei. The firm said its business will “inevitably be impacted” and that “survival is the key word” for the company at present.
RT’s Boom Bust is joined by John Quelch, Dean of Miami Business School, to talk about the future of US-China relations.
Huawei will be able to survive, Quelch says, adding that Washington aims to slow down the Chinese company’s efforts to globally dominate the 5G market. “The consumer division of Huawei accounts for about 50 percent of its total sales, and this particular regulation is aimed at that 50 percent that is focused on consumer smartphones.”
He highlights “an interesting point” with the big player Taiwan Semiconductor. Washington’s actions will put Taiwan in the crosshairs of US-China trade tension, he says.
“Advanced technology is important and, clearly, the US is still ahead in most arenas. China is catching up, still a way behind. But I think from a global point of view, the global consumer is going to be advantaged in the long run by this very exciting competition between the US and China.”
Quelch adds that the trade spat is not just about technology but about who is going to set the international standards for these networks and platforms. “That isn’t as much about global diplomacy as about technology leadership,” he says.
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