The difficult choice between China and the United States

Le difficile choix entre la Chine et les États-Unis

The trade war between the United States and China is escalating.

It bodes rather badly for all of the companies that conducted business with both the United States and China. They may have to choose which of the two mammoths of the global economy, they prefer to continue their business relationships.

The analyst geopolitical Angelo Katsoras, National Bank financial Markets, believes that the COVID-19 creates points of tension that may persist well beyond the pandemic.

The u.s. Congress has filed since January 2019 at a total of 320 resolutions related to China.

“The combined effect of all these measures, he said, up to companies with operations in both the United States and China in an untenable position : they must comply with chinese law and therefore be in violation of u.s. law, or vice versa. “

Not that the war of Trump

Major fact to point out : there is not that the u.s. president Donald Trump who is in the trade war against China. There are also democrats, Joe Biden who wish to see the us government undertake a long, tough battle against the chinese government.

Thus, during the last two months, of important measures (adopted by the Congress on may 15, but apply after a period of 120 days) have been taken against China, with the support of republicans and democrats.

► A, not only the united states manufacturers of computer chips can no longer sell to Huawei, but it is also forbidden to foreign manufacturers of semi-conductors to deliver Huawei products manufactured with american technology without authorization.

Recall that Huawei is the second largest manufacturer in the world of smart phones, the first being Samsung of South Korea and the third Apple of the United States.

► Two, the u.s. department of Commerce has added 33 companies and chinese institutions to a black list due to violations of human rights and links with the chinese military.

► The three, Google and Facebook have received authorization from the Federal Communications Commission (FCC) to enable the section of their network of submarine cables of 8000 miles in the Pacific to Taiwan, but not until Hong Kong because of fears for national security.

► Four, the FCC has warned China Telecom, China Unicom Americas, Pacific Networks and ComNet that if they were not evidence of the absence of any link with the chinese government, they would lose the right to exercise their activities in the United States.

► Five, the u.s. Senate has unanimously approved legislation that would remove from the Nasdaq or the New York stock Exchange, the chinese companies that have refused to leave the review of their audit files for three years in a row. Examples of companies that can be referred to : Alibaba and jd.com.

► Six, tax incentives are offered by the united states government to encourage american companies to relocate their manufacturing to China.

In closing, know that the United States is not the only country that criticises China in respect of its handling of the pandemic COVID-19 and its aggressive diplomatic campaign to deny any responsibility in the pandemic.

There are France, the United Kingdom, Germany, Japan, Australia and even Canada.

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