The financial markets may price in the stepping down of the United States-China trade conflict as the phase one agreement set to reduce risks related to global growth, whereas one random factor remains on its state: the restriction regarding technology that the United States may enforce on China going forward. The chief economist of S&P Global Ratings, Shaun Roache, suggested that whoever wins in technology will also lead the world. He said that according to his views, the world will now see some moves by the United States towards non-tariff actions in 2020, specifically in the sector of technology, and that’s going to produce more uncertainty as well as more concern again as go through 2020.
Roache said restrictions might be definite export controls on specific sectors and restricting the ability of Chinese companies to invest overseas and get into the technology they need. These actions would make it difficult for China to grow its own technology supply chains, the economist said. Washington and Beijing settled on a temporary treaty that obviously a game-changer for the world economy, judging by the rise of the stock market to a record, but according to Roache, trade is only one part of the conflict. It’s this other feature of the relationship, that’s further to do with tech, measures regarding non-tariff where it’s much more difficult, he added. The escalation risks are much greater, and actually, it’s where everyone thinks the prolong impact is much higher.
CFO of Huawei Detained in Canada
The technology of China caught in the crosshairs of the government of the United States as technology behemoth Huawei becomes a negotiating chip in the trade battle. CFO of Huawei still detained in China at the request of Washington for violating United States sanctions on Iran. The telecommunications equipment manufacturer of China placed on the United States blacklist earlier this year, which restricted the access of the company to the United States technology.
Over the arrest of its CFO, U.S. is claiming that the Chinese telecommunication giant presents a national security risk because its networking equipment might use by Beijing for espionage purposes. While Huawei always denied the allegations. In the meantime, a regulatory committee of the United States contacted ByteDance, the TikTok-parent company on the top of concerns that it’s 2017 gaining of another application, Musical.ly, might a national security risk, an individual familiar with the situation told CNBC.
The worldwide most famous social media app of China that becomes a global sensation is now under inquiry for censoring criticism of an American activist of the Chinese government along with investigations into its managing user data.