{"id":565762,"date":"2021-04-28T13:53:23","date_gmt":"2021-04-28T13:53:23","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2021\/04\/28\/tech-is-the-new-frontier-for-trade-wars\/"},"modified":"2021-04-28T13:53:23","modified_gmt":"2021-04-28T13:53:23","slug":"tech-is-the-new-frontier-for-trade-wars","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2021\/04\/28\/tech-is-the-new-frontier-for-trade-wars\/","title":{"rendered":"Tech is the new frontier for trade wars"},"content":{"rendered":"

<\/a> The new trade war will be waged through tech: <\/strong>Technology is the new frontier in the race between the US and China for global influence, as the trade liberalization and global supply chains that characterized the past few decades are giving way to a new era of sanctions and restrictions fueled by mutual distrust over the other side\u2019s (mis)use of new technologies, write Daniel Garcia-Macia and Rish Goyal in an International Monetary Fund report<\/a>.<\/p>\n

Where is this war being fought?<\/strong> The battle between the US and China over 5G is a prime example, with the US blocking the use of American components in Huawei products last year, then conceding that they may be used only in the company\u2019s smartphone<\/a>, not its 5G business. The US has also threatened to block social media platforms run by Chinese companies, such as TikTok and WeChat<\/a>, citing national security concerns. The judicial action against the companies was ultimately halted<\/a>, though the episode pointed to how far the US is willing to go in order to get a leg up on China in the tech race.<\/p>\n

Security concerns have been allowed to trump freemarket economics: \u201c<\/strong>From a classical economic perspective, this escalation makes little sense. In traditional sectors, barriers to trade generally lower economic well-being in all countries involved,\u201d write Garcia-Macia and Goyal. In the digital era, distinctions between economic and security issues are less clear, they write, and tech is at the forefront of this spillover from one arena to another, with governments citing security concerns in order to enact economic sanctions through imposing controls on the tech sphere.<\/p>\n

Goodbye, analog sovereignty:<\/strong> This tech race does not conform to traditional borders or intellectual property rights, and takes tech out of the sphere of the economy and brings it into politics. Traditional sovereignty over land, property and resources is no longer sufficient, Luciano Floridi, a professor at the Oxford Internet Institute told the Financial Times<\/a>, referring instead to the concept of digital sovereignty<\/a> \u2014 the control of data, software, hardware, and infrastructure \u2014 that has become of key importance to states and corporations alike. Digital sovereignty will not become so important as to replace traditional analogue sovereignty, says Floridi, but should be about \u201ccomplementing it with a supranational, contemporary-digital one\u201d which should \u201cprovide to all actors and stake-holders wider benefits of harmonisation [...] and a level playing field.\u201d<\/p>\n

Experts are raising <\/strong>concerns over a \u201csplinternet,\u201d<\/a><\/strong> where the US and China exist in and preside over entirely separate digital realms. Businesses would be among the first to suffer, as a greater digital divide would create additional red tape for businesses operating in both the US and China. The decoupling of trade into separate economic spheres based on which side of the rift a nation happens to fall risks undoing decades of globalization and cooperation.<\/p>\n

Other countries (including Egypt) are being dragged into the rift: <\/strong>US officials urged Egypt last year<\/a> to avoid working with \u201cmalign actors\u201d on developing its 5G network, and to work with American firms instead. The State Department Under Secretary for Economic Growth, Energy, and the Environment invited Egypt to join the \u201cClean Network\u201d \u2014 a group of 40 \u201clike-minded\u201d countries and 60 telecoms companies \u201ccommitted to securing their most sensitive information,\u201d aka, keeping it away from China. The US has earmarked mns to take developing countries out of China\u2019s sphere of influence, and has said<\/a> it will help finance and equip 5G infrastructure for Egypt and other countries through the US\u2019 International Development Finance Corporation.<\/p>\n

What\u2019s to be done?<\/strong> \u201cLeading countries should be urged to set up cooperative frameworks in several areas,\u201d write Garcia-Macia and Goyal. Securing intellectual property rights, as well as enforcing coordinated regulation and initiatives for digital taxation across borders could be done through the creation of a sort of \u201cdigital stability board\u201d that could take the lead on regulatory policy, the authors write. \u201cCollaboration would weaken the incentives for conflict and lead to potentially better outcomes. But it will require sustained effort and rebuilding trust.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

The new trade war will be waged through tech: Technology is the new frontier in the race between the US and China for global influence, as the trade liberalization and global supply chains that characterized the past few decades are giving way to a new era of sanctions and restrictions fueled by mutual distrust over […]<\/p>\n","protected":false},"author":1,"featured_media":565763,"comment_status":"closed","ping_status":"open","sticky":false,"template":"single-feature.php","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[9595],"tags":[694,116,633,2230,1464,132,117,628,9242],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-565762","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-whats-next-2","tag-5g","tag-china","tag-enterprisepm","tag-huawei","tag-tiktok","tag-trade","tag-us","tag-wechat","tag-whats-next","wpautop","entry"],"acf":{"mongo_id":"fc62b0e4-b7d1-49fb-8cd9-c53b6605bb62","is_powered_by":true,"story_type":"1","photo_url":"https:\/\/ent.news\/2021\/4\/526.jpg","photo_position":"above","related_issue":[565750],"teaser":"","voice_url":""},"yoast_head":"\nTech is the new frontier for trade wars - 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Or perhaps you are unsure of its origins or the political maneuvers behind it. Well, you\u2019ll have PBS\u2019 Frontline to thank for the most\u2026","rel":"","context":"In "Worth watching"","block_context":{"text":"Worth watching","link":"https:\/\/enterpriseam.com\/egypt\/category\/lifestyle\/worth-watching\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2019\/6\/188.png?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":598835,"url":"https:\/\/enterpriseam.com\/egypt\/2019\/06\/10\/the-thin-grey-line-between-frontier-markets-and-emerging-markets\/","url_meta":{"origin":565762,"position":3},"title":"The thin grey line between frontier markets and emerging markets","author":"enterpriseam admin","date":"10 June 2019","format":false,"excerpt":"EXPLAINER FOR NON-FINANCE GEEKS- The thin grey line between frontier and emerging markets: In a recent explainer on frontier markets, Bloomberg makes a point of calling them the \u201csmaller siblings\u201d of emerging markets, a very popular \u2014 albeit simplistic \u2014 comparison. The reality is a little more nuanced considering the\u2026","rel":"","context":"In "THE MACRO PICTURE"","block_context":{"text":"THE MACRO PICTURE","link":"https:\/\/enterpriseam.com\/egypt\/category\/the-macro-picture\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2019\/6\/2130.png?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":575338,"url":"https:\/\/enterpriseam.com\/egypt\/2020\/10\/12\/why-wall-street-is-doubling-down-on-china-amidst-ongoing-trade-war\/","url_meta":{"origin":565762,"position":4},"title":"Why Wall Street is doubling down on China amidst ongoing trade war","author":"enterpriseam admin","date":"12 October 2020","format":false,"excerpt":"Wall Street is doubling down on China\u2019s USD 47 tn financial market despite ongoing rhetoric to cut ties with Beijing: While the US and China are butting heads over technology and trade, Wall Street kingpins JPMorgan and Goldman Sachs are going long on Beijing, buying up office space and expanding\u2026","rel":"","context":"In "Worth watching"","block_context":{"text":"Worth watching","link":"https:\/\/enterpriseam.com\/egypt\/category\/lifestyle\/worth-watching\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2020\/10\/114.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":592741,"url":"https:\/\/enterpriseam.com\/egypt\/2019\/11\/05\/why-the-us-china-5g-war-is-bad-news-for-meteorologists\/","url_meta":{"origin":565762,"position":5},"title":"Why the US-China 5G war is bad news for meteorologists","author":"enterpriseam admin","date":"5 November 2019","format":false,"excerpt":"Why the battle over 5G is bad news for meteorologists: Ongoing negotiations at the World Radiocommunications Conference in Sharm El Sheikh are expected to set regulations that would ensure the deployment of 5G will not come at the cost of less effective weather forecasting. This year\u2019s meeting comes after meteorologists\u2026","rel":"","context":"In "Worth watching"","block_context":{"text":"Worth watching","link":"https:\/\/enterpriseam.com\/egypt\/category\/lifestyle\/worth-watching\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2019\/11\/1141.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]}],"_links":{"self":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/565762","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/comments?post=565762"}],"version-history":[{"count":0,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/565762\/revisions"}],"acf:post":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/afternoon\/565750"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media\/565763"}],"wp:attachment":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media?parent=565762"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/categories?post=565762"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/tags?post=565762"},{"taxonomy":"brand","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/brand?post=565762"},{"taxonomy":"newspack_spnsrs_tax","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/newspack_spnsrs_tax?post=565762"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}