U.S.-China tech war hurts economic growth, says Microsoft’s CEO


Vlad Turiceanu
by Vlad Turiceanu
Editor
Loading Comments

U.S. China trade war

In the world of technology, the U.S. and China are leading the pack for some time. With more and more companies emerging every day, both countries are bound to keep their place for now.

U.S.-China mistrust is crippling tech innovation

But the everlasting tensions between them are ruining the progress and the economic growth in tech, according to Satya Nadella, Microsoft’s CEO. He said in an interview with Bloomberg:

All you are doing is increasing transaction costs for everybody if you completely separate. If we take steps back in trust or increase transaction costs around technology, all we are doing is sacrificing global economic growth.

He further used the $470 billion semiconductor industry as an example to explain why both countries should work together rather than create different supply chains.

While the recent agreement between U.S. and China is considered by Satya Nadella a step forward, he also stated that it is not enough and the existence of a verification system would solve the problem.

This also comes at a time when the Trump administration is considering to further limit the supply of Huawei Technologies Co. from more U.S. companies, as a step to pressure other countries to avoid its 5G equipment.

The solution might be a verification system

Again, Satya Nadella used Microsoft’s technology centers as an example:

There has to be a way for any country to be able to trust, through verification, the technology that they are using as part of a their infrastructure. Mechanisms like that have to be in place, and then build trade on top of it instead of thinking of trade and trust as the same thing.

He also said that this AI technology war could lead to a bifurcated system of two internets, with the two superpowers having their own policies, companies, and sectors.

This will certainly have a great impact on the end-user, no matter the path he takes.

How do you think that the U.S.-China tech war will affect you and your buying decisions? Leave your take on the matter in the comments section below and we’ll continue the talk.