Washington: President Donald Trump’s war on Chinese technology companies changed the basic rules of global business, highlighting a new political reality that may have a negative impact on American companies.
The White House opposes the popular Chinese-owned apps TikTok and WeChat, and the severe sanctions on technology giant Huawei highlight the struggle of the two economic giants for technological supremacy under the guise of national security.
Trump’s unprecedented campaign has disrupted economic relations, including tariffs, threats of bans, and economic sanctions on Chinese technology companies.
“At the heart of it is a struggle to dominate emerging technologies,” said Doug Barry of the US-China Business Council.
“The country that succeeds will realize huge economic and geopolitical benefits.”
However, many analysts believe that Trump’s actions may backfire on the US technology industry and other US companies by encouraging China and other countries to respond in kind.
Darrell West, head of the Brookings Institution’s Center for Technology Innovation, said Trump’s actions on TikTok and other Chinese companies “are weakening people’s confidence in American leadership.”
“This is a shakedown, but it’s also a climbdown. (Russian President Vladimir) Putin does this in Russia all the time, but manages it much better.”
