Already the moves have had a significant impact on the shares and business models of Huawei suppliers in the U.S. like Qualcomm and other chipmakers. And that could be just the start.
In a report published this month, researchers at the Information Technology and Innovation Foundation warned that a crackdown on U.S. tech exports would put as much as $56 billion in exports and 74,000 jobs at risk over five years. They also warned that in trying to force a repatriation of supply chains the Trump administration risked undermining the very economic dynamism it’s trying to promote.
“A more effective strategy is to say what is the next generation of advanced technologies and what is required for them to be produced in the United States,” said Stephen Ezell, one of the report’s authors. The administration “has got to recognize that policies like export controls are not an unalloyed good.”
This article was provided by Bloomberg News.