Introduction
The global technology industry is hedging its bets. As the United States and China compete for technological supremacy in advanced semiconductor design and manufacturing, software, and other core technologies, global high-tech companies do not plan to pick sides. Rather, they pragmatically aim to compete in both Chinese and U.S. ecosystems regardless of the extra cost and complexity involved.
This is the message from 158 senior business executives working for American, Chinese, European, Japanese, Taiwanese, and Korean global high-tech firms who were polled about the impact of U.S-China tensions on their industry. While these executives regard it as inevitable that American and Chinese technological spheres of influence will to some extent separate, they also expect Chinese systems and solutions suppliers to continue to rely on globally sourced (rather than Chinese-developed) technologies. In addition, these executives expect multinational companies of all stripes to double down on their efforts to keep competing in the Chinese market.
With core technologies, a central issue in U.S.-China relations, the Commerce Department and other agencies have recently placed greater restrictions on the technologies that can be exported to China, as well as added major Chinese tech companies to the blacklist of firms that can purchase American technology or receive U.S. investment.
Approximately half of the respondents work for companies headquartered within China, and the remainder for U.S., Japanese, Taiwanese, Korean, UK, or German firms. Roughly half work in the hardware industry, including IT and semiconductors. Another 20% work in internet or telecommunications companies. The respondents represent a senior group of executives, including board members, chairpersons, CEOs, vice presidents, and general managers. While this information does not represent a random representative sample, it offers a snapshot of how business leaders perceive and will react to the competition between the United States and China for technological supremacy.
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