Wed, Jun 12, 2019 - Page 8 News List

Trade dispute could lead to others

By Ray Chung 鍾秉霖

As time goes by, such bans might be extended to include manufacturers of surveillance equipment and drones, facial recognition technology such as Apple’s Face ID and so on.

Under the Export Administration Act’s rules on banned items, products manufactured abroad whose software originates from the US are also banned from being sold to Huawei.

Consequently, Taiwan’s electronics and related industries must be careful. Even if they think that they are not being affected at present, if they wait until the US requirements regarding percentage of “US technological content” are lowered, like the percentage of terrorism or totalitarian countries, it might be too late.

It might not really matter whether Taiwan Semiconductor Manufacturing Co is banned from supplying Huawei subsidiary HiSilicon Technologies, because when companies like ARM, Qualcomm and Quorvo have already been banned from selling their products to Huawei, it means that Huawei’s brain, heart, nerves and arteries are already being choked off, so what kind of supplies could it still really need?

Taiwan’s government, business and industry must understand that what is going on between the US and China is not just a trade dispute, and it might go on for a very long time.

Their trade “war” could be followed by a technology war, financial war (freezing assets), diplomatic war, strategic blockades and so on.

Given the risks that lie ahead, Taiwan must take precautions so that we are ready to respond at any time.

Ray Chung is manager of Honeywell Taiwan’s contract and law department.

Translated by Julian Clegg

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