China Will Wean Off American Technology In 7 Years And Win The Trade War

A strategist told CNBC on Monday that China will win its trade war with the U.S. and eventually wean itself off its reliance on American technology.

David Roche, Independent Strategy’s president, and global strategist told CNBC’s Squawk Box, “China will never trust the United States again, and it will achieve its technology independence within seven years.”

China has been traditionally reliant on U.S. suppliers for key technology components such as software and chips, modems and jet engines. However, recent developments in the trade war have affected businesses from both and sides strained those ties.

David Roche said “It’s not just about trade. It’s about technology, it’s about the free flow of ideas, it is rapidly becoming about the free flow of individuals… So it’s a really wide conflict, and it’s simply not gonna go away.”

In May, Chinese tech giant Huawei was placed on a U.S. blacklist, which restricted Huawei from purchasing American-made software and chips unless they got permission to purchase them. Some US mobile networks also use Huawei gear, while other U.S. companies have said their revenue will be affected by this blacklisting.

Google also halted all business activities with Huawei. This move means that the future Huawei phones will no longer come installed with Google’s Android operating system.

China is reportedly surveying its tech companies to gauge their exposure to US suppliers and is also increasing its development in its own tech sector.

“It is a conflict between a rising global power and a declining global power … It’s not just about trade. It’s about technology, it’s about the free flow of ideas, it is rapidly becoming about the free flow of individuals,” Roche said

“So it’s a really wide conflict, and it’s simply not gonna go away,” he concluded.

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