Technology as a Tool in Trade Disputes: The Case of Huawei

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Satyendra Upadhyay & Sanika Ranadive
Conference Name
15th SIMSR Global Marketing Conference
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K J Somaiya Institute of Management, Mumbai
  • Abstract

Over the past year, the economic has been witness to the trade dispute between China and the US. The implementation of new tariffs on exports from both the countries and retaliation every few months has sent the markets not only in the two but also around Europe and Asia in a state of apprehension as to what would be the next move. While the reasons for the trade dispute remain protectionist measures and increase manufacturing, job creation and consumption within own markets, what makes it interesting is that it is being fought among the two top and largest economies of the world with neither stepping back from the negotiations. The very nature of this dispute rings in the characteristic of VUCA where economy and markets worldwide have been affected, and are in some way or another associated with the dispute. The latest to factor in is technology. Schumpeter’s vision of capitalism references how innovative entry by entrepreneurs acts as a disruptive force as it throws established companies and technologies off balance that earlier enjoyed some degree of monopoly power from technological, organizational, regulatory and economic paradigms. (Elliot, 1980) The pessimistic approach to which is the sustainability of the process as it undermines capitalism's own institutional framework. Therefore, in order to keep up with profiteering in the long run, it is important for firms to keep up with the new technology at the rate at which it is changing, thereby revolutionizing the economic structure from within while incessantly destroying the old. Trade in the century as seen is dictated by technology and there has been a shift in the paradigms of where the trade is being concentrated i.e. back to Asia and a noticeable shift in hegemony of the US. The race to install and get advantage of the 5G technology has triggered a geopolitical rivalry between the two nations.

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