Chinese technology companies such as Huawei have been among the chief targets of the trade dispute with the US. The Trump administration’s desire to exclude them from the US is driven by security and economic concerns, and the hope of preserving US tech dominance. In reality, banning Chinese companies may do more to harm America.
A “Fortress America” approach, restricting access to the global marketplace, may only spur Chinese innovation. At worst, it could lead to the splitting of the internet between US and Chinese spheres. In the long term, the Trump administration could be hoisted with its own protectionist petard.
American restrictions on Chinese technology have intensified since 2018. Last August, a defence bill prohibited the US government and its grantees from using Huawei telecoms equipment. The Chinese company was added last month to the US “entity list”, requiring American companies to receive a government license to sell to it. President Donald Trump has also empowered commerce secretary Wilbur Ross to ban any technology company considered to pose a national security risk. Mr Ross is due to make his decision in just over three months.