A standoff is brewing between the United States and China over the Asian country’s growing economic and technological dominance. The world now watches as China begins to move into 5G and driver-less cars; while Tesla executives argue in board meetings and U.S. companies suck up tech and economic competition at home through questionable practices that may require a U.S. government anti-trust intervention.
We are left wondering if the tit for tat between the U.S. and China is truly because of security violations or something else. If you are involved in U.S. business or make any purchase in the United States, you know that virtually everything is made in China. Everything from top secret AI and aeronautical equipment, to computers and shoes sold by famous U.S. brands like Microsoft and Nike; which are manufactured outside of the US. Is it wise for the U.S. to upset China which holds a powerful position in Asia where the majority of American goods are sourced?
It may be that the nearly 65 billion dollar trade deficit has the U.S. on edge, as well as the declining production capacity of the nation. Many are not aware of the financial mechanisms at play in terms of currency and the viability of the U.S. Dollar as oil becomes less viable on the world market. Billionaires could suddenly become poor men overnight if the worlds nations decided it. The move to prohibit Huawei and cut the tech giant out of the Google Android OS application may yet create even larger chasms in the software market, which the U.S. has dominated via Microsoft, Google, Intuit and Apple among others for the past several decades. Will the U.S. see new competition from other OS developers. It is estimated that nearly 788 million Chinese use mobile phones and over 800 million are online according to data from Forbes. This is an incredibly huge market which the U.S. has held a powerful monopoly on on for decades. In the US’ vie for economic and technological dominance, it is possible that a new productivity suite that rivals Microsoft or new computer operating software like Windows might be now in the works to replace Windows or Adobe PDF from US Based companies who now hold a global monopoly unchallenged? Will other nations site security threats for US based companies like, Google, Apple, Microsoft and more in the same manner the US has targeted Huawei? The world waits as the new world order churns forward. Businesses and citizens alike must be ready to pivot and keep their finger on the pulse of this economic standoff.