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  • JAMES KYNGE: The US and China are engaged

  • in a dire struggle over tech.

  • And some analysts say it's likely

  • that tensions could escalate from here, jeopardising

  • the business dealings of both American companies

  • and their Chinese counterparts.

  • The tech war is part of the broader US-China trade war that

  • started more than a year ago.

  • But while the trade war is being fought

  • with tit-for-tat tariffs, the tech war

  • is being waged with direct action against companies.

  • America has blacklisted more than 140 Chinese companies,

  • severely limiting their access to US-made components

  • that they rely on.

  • This has already thrown several Chinese companies,

  • such as Huawei, into crisis.

  • But China is fighting back.

  • It has not publicly ordered a backlash

  • against American corporations in China,

  • but some US companies are now facing stiff headwinds.

  • Chuck Robbins, chief executive of Cisco, the US networking

  • equipment maker, says Chinese state-owned companies are

  • blocking it from deals and that Cisco

  • is being uninvited to bid for some Chinese contracts.

  • If this treatment goes mainstream,

  • US companies have a lot to lose.

  • This chart shows how US companies operating in China

  • sell nine times more to Chinese customers

  • than Chinese companies operating in the US sell to Americans.

  • Another giant US corporation, the chip maker Qualcomm,

  • also reported weakness in its China business.

  • The company, which gets 65 per cent of its revenue

  • from sales in China, warned that earnings are on track

  • to fall to a seven-year low.

  • America's aim in confronting China over technology

  • is to punish specific companies, such as Huawei,

  • for alleged wrongdoings.

  • But this is feeding into a bigger and bleaker picture.

  • The rivalry between the US and China

  • is reversing nearly 40 years of economic engagement

  • between the world's two superpowers

  • and ushering in an era of decoupling.

JAMES KYNGE: The US and China are engaged

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Why the US has a lot to lose in a tech war with China | FT

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    林宜悉 posted on 2020/03/27
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