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There has been another escalation in the conflict between the United States and China in recent days.
– No country anywhere has deceived us like China does. China as we cannot trust China. “I don’t want them to build the defense, like they do now, with our money,” Donald Trump said in front of the White House on Monday.
This is part of Donald Trump’s election campaign tactic, in which he tries to give the impression that his opponent, Joe Biden, has the support of China.
“If Biden wins, China will win, and China will own this country,” Trump said.
He went on to say that it would punish American companies that create new jobs abroad and ban federal contracts for companies if they do business with China.
– This is the most important election in our history. Under my administration, we will make the United States the world’s superpower and end our dependence on China, once and for all, Trump said.
– The company can go bankrupt
It has been almost two years since the first shots were fired from the United States at the Chinese technology company Huawei. This has been successful. The company has been banned from developing 5G mobile networks in most Western countries.
The company’s smartphones, which topped sales statistics in several European countries last winter, are barely found outside of China.
Now the United States plans to intensify the technology war with China. The US Department of Defense is considering placing Chinese computer chip company Semiconductor Manufacturing International Corporation (SMIC) on the same sanctions list as Huawei.
The company’s share price fell 23 percent on the Hong Kong Stock Exchange on Monday.
“The company could go bankrupt,” Bernstein Research computer chip analyst Mark Li told Reuters.
Reactions have not been long in coming from the Chinese authorities.
“This is a shocking attempt by the United States to create dominance in the technology sector,” Chinese Foreign Ministry spokesman Zhao Lijian said on Monday.
He called this an attempt by the United States to use state instruments to impose all possible restrictions on Chinese companies under the pretext of national security.
“This is detrimental not only to international trade, the global supply chain and value chains, but also to national interests and the image of the United States,” Zhao said.
It will become independent from the United States.
Threats from the United States are taken seriously.
– The United States persecutes the big Chinese suppliers of components. They are facing a difficult period in the short term, director Richard Martin of technology analytics company IMA Asia tells CNBC.
He believes it will be difficult for Chinese tech companies to find alternatives, as US restrictions are extensive. Almost half of SMIC’s production equipment comes from US suppliers, according to the Jefferies financial institution.
– The problem is that if they go to Europe or Japan, companies use American equipment in the production process, says Martin.
He believes that the Chinese technology sector will do everything in its power to gain independence from the United States. Huawei is in the process of becoming independent of US patents, components and production equipment.
– It will take them two to three years to get over this and move the entire supply chain to China. The United States is trying to shut down the Chinese tech sector, Martin says of the US sanctions.(Terms)Copyright Dagens Næringsliv AS and / or our suppliers. We would like you to share our cases via a link, which leads directly to our pages. Copying or other use of all or part of the content may only be done with written permission or as permitted by law. For more terms, see here.
