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TechCapon:
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https://techcapon.com/wp-content/uploads/2018/06/Trade-War-Begins-e1521800515560-1170x480-768x315.jpg

A major trade war looms between the United States and China as US president Donald trump is poised to ensure that China doesn’t overtake the US as the world’s leading technology country. The trump administration has dealt heavy blows on Chinese biggest tech companies by imposing bans, fines and restrictions. If this battle for supremacy continues, very soon Chinese tech products including phones will not be able to enter the US and US tech products will not be able to enter China. No doubt China will suffer more damage than the US if it comes to that and we pray it doesn’t! A very serious tech revolution is going on in China as it is making huge plans to become the world’s leader in technology by the year 2025 and Trump said he is determined to protect American technology. Here I’ll be discussing the 5 ways trump is sabotaging the Chinese technology.

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1. Plans to Restrict tech exports to China.

Although most American companies are not happy with it because it will reduce their sales, Trump is not backing down from the plan. He is more concerned that valuable tech secrets will be leaked to China via trade deals as China is already making big advances using American technology. We’ve seen Chinese phones already competing with the iPhone and lenovo is seriously competing with Dell, lol. The trump administration has made it clear of it’s desires to protect American technology but the companies such as Qualcomm and Intel are more concerned about their profits. China is their biggest market outside the US.

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2. Accusing the Chinese phone companies of spying.

Trump has made it clear that Huawei and ZTE are security threats to the US as their devices are being used to spy on Americans and send sensitive information to Beijing. Although there’s no proof of these allegations, it has seriously affected the market value of Huawei and their Chinese counterparts in the United States as citizens no longer trust them. Huawei is Chinese second largest smartphone manufacturers after Xaiomi while ZTE is the fourth largest.

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3. Placing a ban on ZTE.

US companies have also been banned from selling any hardware or software components to ZTE for 7 years for violating US sanctions on Iran and North Korea. If ZTE fails to settle with the US government, it’s Android smartphone business is as good as dead because it depends on chips from Intel, Microsoft and Qualcomm to make their phones. Google play services will also be removed from their phones and it will be almost impossible to sell an android phone without Google play services. Apple has a lot to loose if China retaliates to this move because it sold over 46 billion dollars worth of iPhone in China and Taiwan. That’s a lot of money to loose if China bans apple from selling in their country.

4. Plans to stop Chinese firms from acquiring US TECH companies.

A new policy is being prepared to ban Chinese companies from acquiring US companies with significant technology. With this new policy in place, it will be impossible for Chinese companies to acquire any US phone or Tech company. Recall that Lenovo acquired Motorola, a US phone maker and other Chinese firms have already made other acquisitions in the US. Trump is determined to block any further acquisitions thereby frustrating Chinese Tech companies from taking advantage of American technology.

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5. Placing high tariffs on Chinese imported products into the US.

President Trump’s tariffs on Chinese goods will go into effect on 6th of July. The tariffs will target mainly technology products from China such as smartphones, laptops and other products. This tariffs will cause a huge inflation on Chinese goods coming into the US that consumers will be forced to look for other alternatives. I just pity companies like Walmart who import billions of dollars worth of Chinese goods.

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Who will win this battle, USA or China ?

When two elephants are fighting, it’s the grass that suffers. Citizens and companies of both sides are going to loose big time! Ultimately,the same American companies Trump is trying to protect will suffer heavy loses. Huawei, ZTE and other phone makers in China buy chips worth billions of dollars from Qualcomm, Intel. That market share will be lost as they’ll look for other sources to get their chips. If China responds by banning America products, Apple, Microsoft, Ford, etc will lost a huge market share as well. Chinese companies doing business in the US will also suffer. If this war escalates and America decides to ban all forms of trade with China, there will be no Chinese android phones anymore because America owns Google and Google owns android. The US government can force Google not to licence the android OS to Chinese phone makers anymore, Facebook Twitter, Instagram, Whatsapp SnapChat, YouTube and so on will also withdraw their support for Chinese phones.

How does it affect Nigerians?

It will affect Nigerians very well, infact this is a great nightmare no one ever wish to imagine. Our beloved Tecno, Infinix, Gionee, Xiaomi , Itel etc will be greatly affected and it will be the end of affordable smartphones in Nigeria. What happened to Blackberry will most certainly happen to them. Imagine waking up one morning to hear that Google has withdrawn support for Chinese phones and the phone will just be useless, not completely useless because at least by then you can still be able to make and receive phone calls. Lol! Where will the average Nigerian youth get money for HTC, LG, Sony, Samsung and iPhone ? Let’s just hope it doesn’t get to that and China and USA reaches an agreement really soon because China will not fold it’s hands and watch USA frustrating it’s top Tech companies.

Do you think Trump is right with all these sanctions or he is just being paranoid ? Tell us in the comment section

SOURCE:http://techcapon.com/5-ways-president-trump-is-frustrating-chinese-tech-companies/