What I Learned This Week

An extended trade war could stifle U.S. innovation as China begins to close the technology gap. What are the implications? How to invest.

In WILTWs July 26, 2018 and February 4, 2016, we highlighted China’s determination to achieve technology independence in semiconductors. Also, for over 18 months we have warned about the growing global supply-chain disruption and the intensifying tech-arms race. Last week, an in-depth analysis in the Nikkei Asian Review underscored Huawei’s progress in becoming self-sufficient. Huawei has reportedly been developing its own technologies for years and has been trialing its own radio-frequency components for a decade. Huawei spends $15 billion annually on semiconductors alone. Last year, Huawei procured $11 billion worth of goods from American suppliers. However, Huawei preemptively began to…

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