China wants control over Taiwan. That’s a problem for U.S. tech companies

The mainland’s long-standing ‘One China’ stance is getting more aggressive. And Taiwan is key to how consumer electronics get designed and manufactured.Fast Company
Date: 11-24-20
By: Tim Bajarin

Over the last two years, the U.S. tech industry has been forced to deal with a spectrum of trade issues with China. These include the federal government’s ban on equipment from telecom giant Huawei, increased tariffs, and, most recently, China’s clampdown on Hong Kong. But according to my contacts in Washington and Asia, Taiwan could reemerge as a hot spot, and U.S. tech companies should be aware.

It would be an understatement to say that America’s relationship with China has been bad over the last two years. The current U.S. government is moving away from globalization, while China, at least on paper, remains committed to it.

The reality is that China, under President Xi, is marching toward a policy of exerting more control over trade and business issues within its country. If China had its way, it would also be the master of U.S. companies seeking to do business in the country. This parochial approach causes a great deal of concern for nations that trade with China and that have companies inside China. They worry that over time, China could move even to nationalize companies that have offices in China.

I don’t believe this will happen any time soon. However, companies with dedicated offices and businesses in Taiwan tell me a Chinese threat is now more real than even two years ago.

Leave a Reply

Your email address will not be published. Required fields are marked *

I accept the Privacy Policy

This site uses Akismet to reduce spam. Learn how your comment data is processed.