Tech Experts raise concerns on U.S. trading rules for Chinese companies

U.S.-China conflict continues to be a hot topic among tech experts and some of the analysts raised concerns about the United States trading rules for Chinese companies. The topic was once again brought to light by The Carter Center in Atlanta at a recently hosted forum.

A researcher from the Institute of World Economics and Politics – Zhao Hai said that the U.S. authority put limitations on the trading concept in the name of security threat. Though China believes that the foreign government is misusing its rules to suppress the native region.

Eventually, the sanction stress in China made the country and its firms decline in several aspects including the downslope of the smartphone business. At the same time, it has also changed China’s view of the technology policy from the U.S.

As of now, Chinese companies show the least interest in U.S. chips and have started turning toward native firms like Huawei. Zhao said that Huawei is much more capable of producing similar processors with better quality and cost-effective methods.

Huawei Kirin – a new possibility!

In this case, a good example is the Mate 60 Pro and Nova 12 Ultra which rely on the Kirin 5G chips and work efficiently. After the U.S. banned Huawei from chips trade and other essential products, the company was left with no choice except for Kirin usage.

The latest reports also suggest that the company is planning to boost the Kirin chipset production to retains its shares in the smartphone market and live more independently.

While both countries are trying to cope with the stressful conditions in their way, Zhao said that these actions are making China less likely to accept American technology and firms in the region. Thus, it is a loss-loss situation for both countries.

Trading Rules’ impact on AI

On the other hand, these trading rules will not only impact chip production but also create a dull environment for AI and other business investments. Adding more Zhao said that both countries need to maintain balance in the corporate sector to evolve globally.

“If the US is really true to their idea of a small yard and high fence, I think both sides including the business community need to work together to make sure that that yard is continuing to be small and that fence does not prevent the holding of all the technologies’ flow across borders.” – said Zhao.

Besides, another researcher – Yang Nan said that the free cross-border data flow and digital trade will benefit most American and Chinese companies. Perhaps, there is still some space for Chinese firms to integrate with global partners and discuss AI implications.

At the same time, tech giants like Huawei are becoming self-reliant for chip-producing activities under estimated measures so that they can remain out of the ‘national security’ concerns.

Anyhow, the constant increase in the U.S.-China tension hints that the trading rules and concerns will persist for Chinese companies. Yet, the relationship can also be managed effectively if national security gets a clear definition.

(Source)