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ZTE was close to breaking point while they were blocked from US components, until that sanction was lifted (after the big fine). According to the Bloomberg arti
by Tor3 8y ago
ZTE was close to breaking point while they were blocked from US components, until that sanction was lifted (after the big fine). According to the Bloomberg article there may be a similar deal for Huawei - pay a huge fine or get locked out.
What will obviously happen is that the Chinese will not, can not, accept that they're depending on US components when they could get locked out from them at any moment. They will therefore accelerate, by whatever means (research, hack, steal, invent, anything) their own ability to produce all the parts themselves.
In short, putting the squeeze on China will only hold back the tide for a moment, and then backfire.
- burfog 8y agoThis is awfully similar to when China refused to sell rare-earth element metals, causing the USA to restart production.
- Lio 8y agoHow will putting the squeeze on China for market parity backfire? The Chinese have the goal of dominating Western markets already. They are pretty unlikely stop the state sponsored industrial espionage, the skirting of sanctions or to open up their own markets with or without import tariffs.