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US, China Heading Towards Tech Cold War

The world might be divided between US-led and China-led spheres as the competition between the two countries carries over into artificial intelligence and 5G.

Source : EETimes Asia - MUNICH, Germany , Apr. 24, 2019 – 

The US-China trade war is all about tech supremacy, particularly in artificial intelligence (AI) and 5G, and we might end up with the world taking sides to divide into US-led and China-led spheres.

That's the view of US-China private equity firm Canyon Bridge's co-founder and partner Peter Kuo, speaking at the GSA 2019 European Executive Forum in Munich this week. He said that while there may yet be a face-saving deal that might end the bickering between the two countries over trade matters, the two seem to be heading toward a cold war over not politics but technology. "With the emergence of AI and 5G, it has heightened US sensitivities to China," he said. He added that one of the reasons US-China tensions may persist is that it is unclear what the US really wants to get out of a trade deal.

He points out that while China remains focused, US goals appear contradictory. For example, the US is looking to lower barriers to inward trade and investment, improve IP protection, balance bilateral trade, repatriate supply chains back to the US, and ultimately stop China's rapid economic rise.

China meanwhile is very focused on its growth. That is evidenced in the Made in China 2025 program to drive self-sufficiency in technology, as well as move from exports of low-end products to higher value-added products and services. And it wants to reduce vulnerability and reliance on any single country (i.e., the US).

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