The U.S.-China technology war is more dangerous than Covid-19

” When two elephants dance, it is difficult to stand outside without being affected, ” said Jörg Wuttke, president of the European Chamber of Commerce in China.

China began to recover from the Covid-19 pandemic (originating from Wuhan City in late 2019 before spreading globally, leaving more than 8.3 million people infected), but worried about the wave of the epidemic. The second is rising as Beijing discovered many new cases last week.

Despite this, Wuttke said that Covid-19 was a tackling challenge, European businesses were ” groping in the dark ” because of the instability brought about by the virus. However, being stuck between US and Chinese fire is the long-term threat.

He commented that the US-China trade war, in particular the technology war, led to a financial war, which could last longer, cause more damage and obviously bring enormous instability. “ We are completely dependent on US semiconductors. We also have big markets here (China). The last concern, of course, is when the US or China turn to us and ask “do you have a choice: follow or oppose us “?

The U.S. has put Huawei on a commercial blacklist since May 2019 because of national security risks. Recently, Trade Secretary Wilbur Ross said these risks are still there, especially about 5G. The US decision basically banned domestic businesses from doing business with Huawei and escalated the trade war between the two most powerful economies in the world.

Wuttke said that despite years of lobbying, European businesses still face unfair playing fields in China in emerging areas like 5G. For example, Ericsson may agree on contracts in the Middle East, Africa, Asia, and Europe but cannot compete in China.

According to Reuters