While the US and China clash in a trade war, a fierce competition for dominance in the global tech market unfolds.

China has been rapidly advancing in communication technology, a progress that coincides with the disruptions caused by the trade war affecting tech firms on both sides of the Pacific.

The tech industry operates on intricate connections globally. The ongoing US-China trade dispute underscores concerns about the stability of the tech supply chain. China heavily relies on imported components for its computer chips. Even as it depends on these imports, China is resolute in its ambition to achieve technological self-sufficiency. The trade tensions with the US have accelerated China’s efforts towards this goal. Currently, China only manufactures a small fraction of the semiconductors used in its tech devices but aims to increase this to 70% by 2025.

Affected by the trade war, US tech companies are navigating uncertainties. Despite the Trump administration’s actions targeting Chinese tech, a significant portion of US tech products, including most iPhones, are manufactured in China. As the trade conflict evolves, Chinese concerns over US trade policies are likely to drive China further towards self-reliance, particularly in critical areas like 5G and artificial intelligence. The US benefits from the autonomy of Silicon Valley, immune from direct political influence in Washington, and continues to attract top talent globally. Meanwhile, Huawei, a Chinese tech giant, progresses in rolling out 5G technology worldwide, with recent approvals in India for 5G network trials.