facebookCould US increasing clampdown on huawei sour trade war progress? - Seedly

Anonymous

18 Apr 2019

General Investing

Could US increasing clampdown on huawei sour trade war progress?

Although huawei is an independent company from ccp, its one of the largest chinese telecomms companies and its founder have close links to ccp. personally i foresee this issue will emerge in the current trade talks. not bullish this can be resolved easily between them.

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Hi anon,

personally what I feel is that this trade war will reach a conclusive talk, and a deal will be made, but merely just to save face for Trump's elections in 2020. The war has dragged on to this date due to the fact that this war is based on a fight for technology supremacy, not so much trade supremacy. All the trade side of the war - soy beans, steel etc. can all be settled rather easily, whats holding them back is the problems of China taking US IPs if US companies wants to expand into China.

However now China is innovating ahead of the US - look at Hua wei's enthusiasm for provision of 5G tech, the next step in connectivity and technological advancement. The US can't have China be producing the infrastructure of the future, they are afraid that China will be able to manipulate and steal all their data, and the US will be powerless to stop them.

So the trade war will end for now, after this year most likely, because Trump can't afford going into elections while having a baggage of broken promises of the wall and the trade war weighing him down. But I think that US and China will soon find themselves once again at loggerheads due to "trade" again after Trump's position as president is cemented for the next 4 years. If he loses well, I still think US will be extremely disapproving China's huge involvement in building the 5G infrastructure, and we will have another problem at our hands.

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