WORLD US tech sector's dependency on China 'under-appreciated': UK media

WORLD

US tech sector's dependency on China 'under-appreciated': UK media

Xinhua

22:15, August 13, 2020

LONDON, Aug. 13 (Xinhua) -- The extent to which the U.S. tech sector has become dependent on China is "under-appreciated", said an opinion article recently published by the London-based Financial Times newspaper.

8f3118d92bf849e9ab73a2a9fb6d9bbd.jpg

In this file photo taken on June 22, 2020 People wait in line outside an Apple store on June 22, 2020 in the Brooklyn Borough of New York City. (File photo: AFP)

"The two tech worlds are connected via a tangle of wiring," it said, noting that the great uncoupling would cause huge economic pain to hundreds of U.S. tech companies.

It cited Apple as an example. "In a world where many homes in the west are cluttered with its devices, China also offers a vital source of fresh customers," said the article.

Tim Cook, Apple's chief executive, was quoted as saying that "three out of four people in the country buying Mac computers were doing so for the first time; two out of three iPad buyers are new to the product."

Five U.S. chip companies were also used as evidence to prove the U.S. tech sector's dependency on China. "Nvidia, Texas Instruments, Qualcomm, Intel and Broadcom -- each with a market value of more than 100 billion U.S. dollars -- depend on China for between 25 percent and 50 percent of their sales," said the article.

"It is not just the depth of dependence, it is also the breadth. Pick through the latest earnings season and you come across countless examples of U.S. tech company executives highlighting their strength in China," it added.

Data from both Skyworks and Qualcomm were also quoted as examples. "More than 60 percent of smart phones sold in China now incorporate 5G technology. Qualcomm's shares, too, are close to an all-time high," it said.

The article pointed out that for all the anti-China actions, the market does not believe the United States will be willing to completely pull the plug or that China will opt for damaging retaliation. "This is too complacent," it said.

Related Stories

Terms of Service & Privacy Policy

We have updated our privacy policy to comply with the latest laws and regulations. The updated policy explains the mechanism of how we collect and treat your personal data. You can learn more about the rights you have by reading our terms of service. Please read them carefully. By clicking AGREE, you indicate that you have read and agreed to our privacy policies

Agree and continue