The real battle is the one being fought for technological supremacy
Economic analysts were in a bit of a daze since the President’s announcement on Sunday where the tariffs on $200 billion worth of Chinese goods was increased to 25% from 10%.
While the reason that Trump gave was, I had to do this, with a motto to work on the trade negotiations which are moving “too slowly”.
The world has held on its breath following the decision on whether or not China will retaliate and perhaps spark off yet another China – U.S. trade war.
The Chinese, however merely decreased the size of the delegation that would be traveling to the U.S. in order to negotiate the future of the trade between the two countries.
The analysts calling it bluff on the true motives of recent developments, as the Chinese bestowed their willingness to engage in the negotiation despite the gale from the American President.
The true issue in the eyes of analysts is the one where both these countries are on the brink of game-changing breakthroughs in the field of technology.
For instance, both countries look to be the first ones to assert their dominance in the 5G market.
The U.S. started their assault against the Chinese effort with intense political pressure towards the Chinese company Huawei, citing them of handling tools that may assist the Chinese government to spy on them.
Finding a resolution to the ongoing cold trade war for technological dominance is the most crucial issue.
One of the main demands of Donald Trump’s Whitehouse is that the American based companies will hand over their technological knowledge in return for greater accessibility to American companies to the Chinese market.
The countries are however looking to become leaders in the race to dominance in the realms of artificial intelligence, robotics, and other nascent technologies.
How far are these countries going to take these backhanded attempts at getting ahead in this race? And how will those attempts affect the economy?