icon bookmark-bicon bookmarkicon cameraicon checkicon chevron downicon chevron lefticon chevron righticon chevron upicon closeicon v-compressicon downloadicon editicon v-expandicon fbicon fileicon filtericon flag ruicon full chevron downicon full chevron lefticon full chevron righticon full chevron upicon gpicon insicon mailicon moveicon-musicicon mutedicon nomutedicon okicon v-pauseicon v-playicon searchicon shareicon sign inicon sign upicon stepbackicon stepforicon swipe downicon tagicon tagsicon tgicon trashicon twicon vkicon yticon wticon fm

Why US efforts to damage Chinese tech firms is a ‘lose-lose proposition’ – RT’s Boom Bust investigates

Why US efforts to damage Chinese tech firms is a ‘lose-lose proposition’ – RT’s Boom Bust investigates
As Washington continues to ramp up pressure on Chinese technology companies and apps, such as Huawei, TikTok and WeChat, Beijing has responded by launching its own global data security initiative.

The plan, announced by the Chinese government on Tuesday, signals that the Trump’s administration efforts against China are working, Hilary Fordwich of the British-American Business Association believes. However, those policies can easily backfire.

“This actually could be a lose-lose proposition,” she told Boom Bust citing Jefferies’ analysis. “The ban on China means that a lot of US manufacturers of semiconductor chips are going to be out of business.”

The business development leader explained that China is currently importing even more semiconductor chips than they do oil. Beijing’s 10-year initiative implies that the country will produce 60 percent of their own chips by 2025, and if they stay on schedule, they will manufacture 70 percent of all semiconductor chips domestically. 

While the recent threat by US President Donald Trump plunged the market value of China’s major semiconductor company, SMIC, its stock is still trading over 50 percent higher over the year. That’s because they’re making “so many chips at a rapid rate,” Fordwich noted, adding that investment is still flocking to China due to this production boom.

For more stories on economy & finance visit RT's business section

Dear readers and commenters,

We have implemented a new engine for our comment section. We hope the transition goes smoothly for all of you. Unfortunately, the comments made before the change have been lost due to a technical problem. We are working on restoring them, and hoping to see you fill up the comment section with new ones. You should still be able to log in to comment using your social-media profiles, but if you signed up under an RT profile before, you are invited to create a new profile with the new commenting system.

Sorry for the inconvenience, and looking forward to your future comments,

RT Team.