USA CHINA TECH COLD WAR
                     USA CHINA TECH COLD WAR
INTRODUCTION
• The two countries United States and China are competing each 
other for influence in the rest of the world.
• This has created a technology cold war between Beijing and 
Washington.
Source: Allianz Global Investors
ALLIGATION OF USA
• The U.S. indicted Chinese hackers allegedly working with the 
Chinese government, including trying to steal corona virus research.
• The U.S. campaign to ban Huawei from global 5G networks picked 
up steam this month, too.
Source: Nikkei Asian Reviews
LATEST STEP BY USA
• US steps against Huawei mark the first real prohibit action by a 
western government in the nearly two decades.
• US restrictions imposed on the use of chip making tools. This can 
lead Huawei towards shortages in its supply of specialist chips
Source: Financial Times
5G NETWORK
• The growing competition has taken place to dominate technologies 
such as 5G networks and artificial intelligence.
• This can impact the plans of most countries preparing to transition 
to a 5G regime, including India.
Source: Allianz Global Investors
HARDWARE MARKET
• Chinese company Huawei went on to sell its products in more than 
170 countries and became the largest telecoms equipment 
manufacturer in the world in 2012.
• It overtook Apple as the world’s second-largest manufacturer of 
smart phones in 2018.
Source: LIT-CI
ACTION AGAINST HARDWARE 
MAKERS
• US has banned Huawei on the ground that its equipment is 
designed to aid snooping and would make American telecoms 
players dependent on subsidised Chinese technology.
• For China, the action has come at a time when 5G is set to be rolled 
out globally, with Huawei.
Source: The Indian Express
 STAND OF INDIA IN THIS BATTLE
• India has asked state-owned telecom service providers to exclude 
Chinese companies from the scope of their network contracts.
• This was part of the wider decision to signal curbs on Chinese 
investments and tech companies in the country.
Source: Sanmarg Live
IMPLICATIONS FOR OTHER STAKEHOLDERS 
IN THE TELECOM INDUSTRY
• The leaders in the telecoms network equipment market are:
– The European players such as Ericsson and Nokia
– South Korea’s Samsung
• US has tried to retain its control on this key aspect of 
communication technology.
Source: Business Insider
COMPETITIVE ADVANTAGE
• Other global players could be at a competitive advantage from the 
cold war of USA and China. 
• Even small operators in rural parts of USA will no longer be able to 
access federal subsidies to buy or maintain Chinese equipment.
Source: Foreign Policy
GLOBAL SUPPLY CHAIN
• This clash affects giant tech companies with global supply chain like 
Apple, Intel and Qualcomm.
•  And Chinese tech giants like Huawei that want to do business with 
US companies.
Source: Time Magazene