Tech sector frets as US-China trade tensions simmer

AFP, Washington: As US-China trade tensions ratchet up, the technology sector is fretting over the potential for collateral damage to one of America's most important export industries.

The tech industry is not directly affected by the new tariffs unveiled by the Trump administration which aim to target Beijing for unfair trade practices failure to protect intellectual property.

But some industry leaders fear tech will be dragged into the dispute, with the potential to impact the estimated $3 trillion industry in which the US and China are key players.

"As trade wars escalate, they are not controllable, they are not predictable," said Ed Black, president and chief executive of the Computer & Communications Industry Association, which represents major tech firms such as Amazon, Facebook, Google and Netflix.

Black said the US administration "correctly identified some of the problems" with trade involving China but "missed all the problems of internet companies doing business in China."

Black said the tech industry understands the need to confront China over trade barriers and other practices, but that Washington's efforts to go alone could "weaken the international trading system."

The relationship of US tech firms with China has long been complicated by concerns about censorship, labor and human rights and the potential for stealing trade secrets.

Google shut down its search engine for China in 2010 after it found accounts of Chinese human rights activists hacked and some US-based online platforms are banned by Beijing.

But Apple recently agreed to base its cloud storage for Chinese users in the country, saying it had to comply despite concerns over Beijing's surveillance of citizens. And Airbnb said it would share customer data with the Chinese government as well.

 

Tech sector frets as US-China trade tensions simmer

AFP, Washington: As US-China trade tensions ratchet up, the technology sector is fretting over the potential for collateral damage to one of Americas most important export industries. The tech industry is not directly affected by the new tariffs unveiled by the Trump administration which aim to target Beijing for unfair trade practices failure to protect intellectual property. But some industry leaders fear tech will be dragged into the dispute, with the potential to impact the estimated $3 trillion industry in which the US and China are key players. As trade wars escalate, they are not controllable, they are not predictable, said Ed Black, president and chief executive of the Computer Communications Industry Association, which represents major tech firms such as Amazon, Facebook, Google and Netflix. Black said the US administration correctly identified some of the problems with trade involving China but missed all the problems of internet companies doing business in China. Black said the tech industry understands the need to confront China over trade barriers and other practices, but that Washingtons efforts to go alone could weaken the international trading system. The relationship of US tech firms with China has long been complicated by concerns about censorship, labor and human rights and the potential for stealing trade secrets. Google shut down its search engine for China in 2010 after it found accounts of Chinese human rights activists hacked and some US-based online platforms are banned by Beijing. But Apple recently agreed to base its cloud storage for Chinese users in the country, saying it had to comply despite concerns over Beijings surveillance of citizens. And Airbnb said it would share customer data with the Chinese government as well.