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Strategies & Market Trends : The Financial Collapse of 2001 Unwinding -- Ignore unavailable to you. Want to Upgrade?


To: ggersh who wrote (1883)2/8/2019 9:52:16 AM
From: elmatador  Read Replies (1) | Respond to of 13803
 
Taking On Trump

Falling out with President Trump has downside consequences.

ZTE was deprived of US components and nearly bankrupted, Huawei is seeing its global expansion plans trashed, Fujian Jin Hua saw its $10 billion DRAM project halted, loads of Chinese companies’ attempted takeover of US companies have been thwarted by the White House and China goods may still get a 25% tariff slapped on them.

In addition, Chinese money going into Silicon Valley startups – $3.1 billion worth last year – is being spurned. The money flow is slowing.

US start-ups are becoming wary of accepting Chinese money because they have to report it to the Committee on Foreign Investment in the US which can hold up companies’ investment plans and can open the companies up to future US government scrutiny.

Some Chinese investors are trying to avoid US government scrutiny by taking stakes of less than 10% in companies and not asking for board seats which limits their ability to get technologies transferred to China.

Nothing illustrates the long arm of the Trump administration more than the pressure on companies and countries not to buy Huawei switchgear.

Australia banned Huawei from its 5G programme. BT dropped Huawei from a particularly sensitive network it is building. The Italian government yesterday denied reports it had banned Huawei from 5G contracts because of US pressure. Germany is still deliberating, while Deutsche Telekom has said that not using Huawei gear will set back the introduction of 5G in Germany by two years.

The EU has called for a unified European approach to Huawei.

Mind you the whole situation could be changed next month when the White House says it expects to conclude a trade deal with China.

But it all goes to show that, as Jeff Bezos found out with the National Enquirer dick pic revelations, that you’re in for a hairy ride if you decide to take on President Trump.

electronicsweekly.com