& cplSiteName &

Trade Warmonger Trump May Slap Tariffs on Chinese Tech – Reuters

Iain Morris
3/14/2018
50%
50%

Still not satisfied after slapping tariffs on steel and aluminum imports, trade war enthusiast Donald Trump now has the telecom and technology sectors in his crosshairs, according to press reports.

The US president plans to impose tariffs on up to $60 billion worth of Chinese imports, according to an update from Reuters, and will focus largely on telecom and technology equipment.

Citing sources close to the Trump administration, Reuters says that tariffs will target IT, consumer electronics and telecom and could be introduced "in the very near future."

Trump has previously argued that trade wars are a positive thing and that restrictions will protect US jobs against competition from low-cost Asian markets. His administration has also claimed that Chinese companies such as Huawei Technologies Co. Ltd. and ZTE Corp. (Shenzhen: 000063; Hong Kong: 0763), which sell network equipment and devices, are a potential threat to US national security.

US officials say China's government could use equipment and services from the Chinese companies to spy on the US.

US carriers that deal with the government have been warned off buying gear from Huawei and ZTE since 2012, when a government report first labeled them a security risk. Earlier this year, Texas Congressman and Trump supporter Mike Conaway proposed new legislation that would stop companies from buying any product or service from the Chinese companies. (See Huawei, ZTE Face US Federal Ban.)

The move came just after Huawei had failed to land a major smartphone distribution deal with AT&T Inc. (NYSE: T), one of the US market's biggest mobile operators. At the time, Reuters reported that security concerns were raised during the discussions between AT&T and Huawei.

Earlier this week, Trump moved to block the proposed takeover of US mobile chips maker Qualcomm Inc. (Nasdaq: QCOM) by Singapore-headquartered Broadcom Corp. (Nasdaq: BRCM). The US government is rumored to have been concerned about Chinese influence over Broadcom. (See Trump Blocks Broadcom's Qualcomm Acquisition .)

The backdrop to these disputes and the possibility of further tariffs is US concern that China could emerge as the dominant force in areas including 5G, a next-generation mobile technology, and artificial intelligence.


Want to know more about 5G? Check out our dedicated 5G content channel here on
Light Reading.


Huawei, China's biggest network equipment maker, last year spent about $12 billion on research and development, nearly three times as much as Sweden's Ericsson AB (Nasdaq: ERIC), one of its biggest Western rivals.

Chinese Internet companies such as Alibaba, Tencent and Baidu, meanwhile, have emerged as a serious challenge to Silicon Valley in the development of AI. In January, Alibaba's latest AI was reported to have outperformed humans in tests of reading ability and comprehension.

Bjorn Taale Sandberg, the head of research for Norwegian telecom operator Telenor, thinks AI will underpin every industry and service in the next 20 years. If his prediction proves correct, the companies and countries that control the leading AI systems will be in a dominant position.

Any tariffs that specifically target China would be sure to meet with a response from Beijing, however. According to Reuters, Chinese foreign ministry spokesperson Lu Kang has already indicated that China could retaliate if hit with punitive measures.

"If the United States takes actions that harm China's interests, China will have to take measures to firmly protect our legitimate rights," he is quoted as saying.

— Iain Morris, News Editor, Light Reading

(1)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
smartedge
50%
50%
smartedge,
User Rank: Lightning
3/14/2018 | 5:36:43 PM
Re.:Trump may slap tariffs on chinese tech
This is great news. 

In the 1990s and 2000s, Huawei and other chinese companies, with full support of the chinese government, engaged in massive wholesale theft of intellectual property and technology, the likes of which the world has not seen before or since, from foreign companies, including Motorola, Cisco etc. Overnight, Huawei grew from a small startup company to one that that produced everything under the sun - from handsets to RAN to billing systems. 

I guess its payback time for these companies.
Featured Video
Flash Poll
From The Founder
After almost two decades at Light Reading, it's time for a different optical adventure.
Upcoming Live Events
September 24-26, 2018, Westin Westminster, Denver
October 9, 2018, The Westin Times Square, New York
October 23, 2018, Georgia World Congress Centre, Atlanta, GA
November 6, 2018, London, United Kingdom
November 7-8, 2018, London, United Kingdom
November 8, 2018, The Montcalm by Marble Arch, London
November 15, 2018, The Westin Times Square, New York
December 4-6, 2018, Lisbon, Portugal
March 12-14, 2019, Denver, Colorado
All Upcoming Live Events
Hot Topics
MWCA Day 2 Recap: '5G' Rolls Out & We Roll On
Phil Harvey, US News Editor, 9/14/2018
Apple: It's the End of the SIM as We Know It
Iain Morris, International Editor, 9/13/2018
MWCA Day 1 Recap: 5G Is Here…?
Phil Harvey, US News Editor, 9/13/2018
So Long, & Good Luck With That
Steve Saunders, Founder, Light Reading, 9/14/2018
Animals with Phones
Live Digital Audio

A CSP's digital transformation involves so much more than technology. Crucial – and often most challenging – is the cultural transformation that goes along with it. As Sigma's Chief Technology Officer, Catherine Michel has extensive experience with technology as she leads the company's entire product portfolio and strategy. But she's also no stranger to merging technology and culture, having taken a company — Tribold — from inception to acquisition (by Sigma in 2013), and she continues to advise service providers on how to drive their own transformations. This impressive female leader and vocal advocate for other women in the industry will join Women in Comms for a live radio show to discuss all things digital transformation, including the cultural transformation that goes along with it.

Like Us on Facebook
Partner Perspectives - content from our sponsors
One Size Doesn't Fit All – Another Look at Automation for 5G
By Stawan Kadepurkar, Business Head & EVP, Hi-Tech, L&T Technology Services
Prepare Now for the 5G Monetization Opportunity
By Yathish Nagavalli, Chief Enterprise Architect, Huawei Software
Huawei Mobile Money: Improving Lives and Accelerating Economic Growth
By Ian Martin Ravenscroft, Vice President of BSS Solutions, Huawei
Dealer Agent Cloud – Empower Your Dealer & Agent to Excel
By Natalie Dorothy Scopelitis, Director of Digital Transformation, Huawei Software
All Partner Perspectives