The unseen face of trade wars: U.S. - China technology competition

Abstract

Abstract Purpose- The main pillars, strategies and future perspective of the technological cold war between the United States and China are the subject of analysis of this article. Methodology- The study analyzes the future of technology wars between the U.S. and China, the repercussions on global markets, and the effects of diplomatic developments on the economy of the country. Findings- Donald Trump has stated that under Chinese law, foreign companies can enter the Chinese market only by forming joint ventures with local parties, adding that this requirement allows Chinese companies to access the technologies of their U.S. partners. China now holds a very important place in the global production chain. Conclusion- China, which has changed its economic approach from labor-intensive production to technology-intensive production, aims to escape the middle income trap by exporting high value-added technological products. Falling behind China in production, the U.S. is trying to prevent a competition that China will become even more prominent thanks to its 5G technology, and to delay it where it can't prevent it.