INSUBCONTINENT EXCLUSIVE:
Authors: Super UserWhat do many TVs, batteries, computer monitors, and printer ink cartridges all have in common They're made in China, of
what's happening, and why, and a Pandora's box opens that reveals just how much this is not only about trade, but about domination of future
tech like AI, autonomous cars and 5G.The Trump administration doesn't think China properly protects intellectual property or sufficiently
The trouble is, the cost could end up simply being passed straight back to anyone in the US that wants to buy Chinese-made
could they getChinese-made electronics could become as much as 23% pricier for US shoppers, according to a report from the Consumer
that costs $250 today would cost $308 after the tariffs are applied, it says, while one that costs $500 today would cost $615
"These proposed tariffs are bad for the economy, businesses and American consumers," says Gary Shapiro, CEO and president, CTA."For TVs,
just one of the 1,300 products on the administration's list, American pocketbooks will suffer." The US imported 23 million TVs from China in
this mean all TVsThat 23% price increase applies only to TVs imported from China
"The top three Chinese brands (TCL, Hisense Skyworth) combined accounted for more than 20% of worldwide shipments during 2017, and
this policy proposal becoming law is still in the balance, but the impact on consumers would be considerable," says Manning Smith,
suggesting that the average price of a TV in the US could jump from $450 to $500.However, there are always loopholes
"Companies such as TCL, which has grown rapidly in the last 24 months in the US and now finds itself competing closely with LG, has
destined for the US to countries unaffected by the tariff." Both TCL and Hisense have assembly plants in Mexico.Chinese telecoms and
makers, and the end result is that Americans can't buy a Huawei P20 Pro, and soon, the ZTE Axon 7
order' on ZTE, banning it from importing US components
"The Denial Order will not only severely impact the survival and development of ZTE, but will also cause damages to all partners of ZTE
including a large number of US companies," said a spokesperson.It all goes to show just how reliant US and Chinese tech companies are on
That thing is the microchip.Key to understanding the dispute is microchips.Cheap as microchipsTariffs aside, the US is mostly concerned with
Taiwan's MediaTek and Taiwan Semiconductor, and South Korea's Samsung Semiconductors and Hynix, are all major players, as are US companies
the future of AI, autonomous cars and the rollout of 5G at stake, this is a politically sensitive industry.Although Chinese companies do
make chips, such as Huawei, RockChip and Foxconn, the industry is a work in progress that the country's 'Made in China 2025' is trying to
And that means buying up technology from around the world."Chinese companies want to create semiconductors inside China, rather than import
from the States, but they know that the only way to do that in the next few years is using intellectual property," says David Harold, VP
immediate term, there are plenty of semiconductors available for TV and mobile from Taiwan, or automotive from Japan and Israel," he
says.Qualcomm makes the Snapdragon chips in premium Android phonesIs the global tech market history"Long-term, I think the expansion of the
Chinese chip industry is likely to be good for world electronics consumers," says Harold
quickly advance their chip-making businesses.However, Dr Joe Zammit-Lucia of think tankRadix and co-author of Backlash: Saving Globalisation
from Itself is not convinced that a decrease in global supply chains will push up prices for tech goods
so internationally intertwined it is difficult to separate the layers and understand the potential impact on the worldwide market," says
electronics."The tech industry is globalisation writ large, and it's probably staying that way, but one thing's for sure: no trade dispute
has been this fascinating since the opening sequence of The Phantom Menace.0521e9bf6746c56c7da994dd908fdb22.jpg#
