Have you heard of Huawei? Huawei is one of the biggest tech companies and supplies thousands of products across the world. They are a China-based company, which starts off the problem the US has with Huawei. The US is in the middle of a huge trade war with China. One party increases tariffs and the other retaliates which then causes the first party to do the same and it continues into an endless cycle unless one nation gives in or completely disconnects themselves from the other and Bans all imports and exports or goes even further and declares an actual war overstepped on toes. Back to how Huawei fits in this trade war, they supply millions of products across America which can cause an issue in the information age we are living. If Huawei can collect American data then it only takes the Chinese government to ask Huawei for the information for them to have access to it. Imagine if a lot of Huawei products were used in the Pentagon or the white house and now the Chinese government has access to lots of sensitive information. That can be fatal for the United States if there were to be a full-blown war. The US has put a ban on Huawei and has gone as far as notifying allies of this possible outcome. Our allies have completely pulled out of supplying Huawei with batteries, circuit boards, and all kinds of other tech parts. The negative for America in this issue is that the consumers will be taking the brunt of the damage in their wallets. With our tariffs for imports increasing from China the cost of our everyday products will cost more. Take Apple, for example, they supply 30% of their iPhone sales from China. If they were to leave China that would cost them 30% of their sales plus moving factories back to the US will cost millions maybe even billions and it will take years to complete the task effectively sending the entire industry into chaos. Do not worry too much though, there is still time for this trade war to work itself out and things could get better.
What do you think about this Trade War? Let us know in the comments below :)
Photo: via South China Morning Post