The trade war that the US is waging with China will eventually be won – by China according to one strategist. This will take place while China weans itself off US technology and becomes a super power. In 7 years, China will not rely on US technology. China has traditionally been reliant on US suppliers for some of its basic tech components such as chips and software, as well as modems and jet engines, according to an article on CNBC attributed to Stella Soon.
Mr David Roche, Independent Strategy`s president and global strategist made these comments on CNBC on a show called Squawk Box. The US has has countered some of the most unpopular trade practices that many countries have charged China with. The most obvious target of US trade rage is Huawei – a company with which US firms are ending business. Some computer chip and component companies are now ending relationships with Huawei.
In short, Huawei was placed on a blacklist, restricting the company from buying components in the US. Because of the Alphabet is not doing business with Huawei, its phones will no longer have Google Android systems installed. According to Mr Roche, the issues are not about trade but technology and the free flow of ideas and individuals.
“So it is a really wide conflict that is not going away,” according to this strategist. China is developing its own technology which will allow it to make its own computer chips – aiming at 40 percent by 2020 and 70 percent by 2025. Currently 16% of semiconductors used in China are domestically produced according to the Center for Strategic and International Studies.
The US and China are clearly at the start of a Cold War that will rival the 1970s US Soviet Cold War according to some geopolitical strategists.