Regardless of what led to a failure to conclude a trade agreement between the US and China, the new reality is that hardliners on both sides have now gained the upper hand over those seeking to find an agreed way forward. It means both sides now have fewer inhibitions to provoke the other on trade, and even more sensitive and dangerous subjects.
“The technology war is not going to end,” Alastair Newton, director of Alavan Business Advisory and a former British diplomat, told CNBC’s “Squawk Box” on Wednesday. “Technology is where this battle is going to be fought out, even if we do get a trade deal on bilateral goods.”
If the ongoing tensions between Beijing and Washington force companies to develop two different sets of technologies -- one for China and its aligned countries, and the other for the rest of the world -- then it would be bad news for everyone, according to a senior executive at a multinational tech firm.
As ITIF has argued for more than a decade, there is no question China is the world’s leading practitioner of the dark arts of innovation mercantilism. As such, the United States, and the global trading community more broadly, is well within its rights to insist that China dramatically roll back these egregious and unfair practices, including intellectual property theft, forced technology transfer, and massive industrial subsidies.
It’s thrilling and nail-biting stuff watching the unfolding of what some predict will prove to be the defining event of our time - the onset of a technology cold war between the world’s two superpowers, the US and China. Whether Trump’s tough stance on Huawei turns out to be a hard-ball negotiating tactic or not, the events of the last few weeks will, in all likelihood, set China on a game-changing course towards becoming technologically self-reliant.
America was late to the game--and is now paying the price because China, the world’s second largest and powerful economy behind the U.S., was able to take advantage by stealing secrets from some of the nation’s most critical businesses, including the U.S. government. Secretary of State Mike Pompeo is worried that the communist-led country has stolen defense secrets and used them to technologically advance their own defense systems, in both capacity and intent.
Secretary of State Mike Pompeo told FOX Business’ Maria Bartiromo that Huawei Technologies' ties to the Chinese Communist Party pose the greatest threat to America’s economic and national security. “Huawei is an instrument of the Chinese government. They’re deeply connected. It’s something that hard for Americans to understand,..."
...the friction between these two superpowers, the U.S. and China, could result in a separation of tech spheres. This is already beginning as Chinese tech companies such as Huawei and Xiaomi look to alternative sources for semiconductor chips and other high-design supplies. It is also happening as U.S. companies are turning away from selling to Chinese companies and into China.
A new floating bullet train capable of hitting speeds of 600 kilometers per hour (about 372 miles/hour) is one step closer to reality in China. On Thursday, the body prototype for the country's latest high-speed magnetic-levitation (maglev) train project rolled off the assembly line in the eastern Chinese city of Qingdao.
Drone aircraft used to be prohibitively expensive, but now you can buy a camera-equipped drone that talks to your smartphone for under $100. The US Department of Homeland Security has issued an alert that drones manufactured by Chinese firms might have become a little too accessible. The DHS says much of the data collected by these drones ends up on servers in mainland China where the Chinese government can access it.