United States and China To Divide Tech World

If the escalating tension between the United States and China will lead to a two set of different sets of technologies, consumers are the one to suffer from it. The tech world will be split into two, one for China and its aligned countries and other side is for the U.S.

Besides, the evolution of technology is expensive, and this will reflect on its products.

Trend Micro’s chief financial officer Mahendra Negi stated, “The local regulations might drive development in different parts, so you will have this problem of compatibility.” For instance, a user might need to own multiple smartphones. One smartphone that works on the side of China and the other one is for the other side of the world.

Also, competition in technology is now one of the most significant factors in the ongoing U.S.-China trade war. At the same time, the trade war also implicates global IT supply chain based in Asia and the United States.

Tech War

Not long ago, the United States blacklisted Huawei, a Chinese tech giant, in doing any business transactions with American firms. Another equally important, Huawei is preparing to be the next generation of high-speed mobile internet.

After that, despite the denials of Huawei, U.S. Secretary of State Mike Pompeo said that the company works with the Chinese government. And Washington is trying to persuade its allies to stop any business with the telecom giant on national security grounds. However, Beijing condemned the remarks of Pompeo, and Huawei denied the accusations multiple times.

Then Mahendra Negi stated, “We hope that a lot of this is posturing around some trade negotiations and it will not really go down in that direction where there are barriers.”

Meanwhile, Trend Micro does not ship any physical products. But sooner or later, it will still feel the effects of the trade war between the United States and China.

Also, if the whole economy becomes weak, it will affect investments, which can be the reason for the company to suffer.