China is rising above the rest of the world in technological developments, and an expert and CEO in the chip industry said he believes the world's most populous nation is now strong enough to drop dealings with the U.S. if the White House keeps attacking Asia's biggest economy.
In an interview with CNBC, CEO of chip industry group Semi, Ajit Manocha, noted that if U.S. President Donald Trump's administration continues to wage war on China in unilateral ways, the Chinese government can keep growing its business partnerships with other countries.
For Manocha, the future of technology may have one almost sure path and that is a "more dependent" environment on China's offerings of high quality yet affordable products and services.
Manocha, in particular, pointed out that the Asia Pacific's journey towards 5G and IoT (Internet of Things) could equate to around 50 percent of the global market's share in the near future. In the Asia Pacific region, China is leading the 5G race.
"Don't underestimate China here. I think they are definitely in the lead," Manocha, an expert in multiple technologies, stressed.
The Semi CEO went on to predict that the Chinese 5G market may already be ahead on "many areas" in terms of advanced technology such as 5G and IoT-based innovations. Manocha's comments may be reflective of previous statements by other experts that China now has a more powerful stance in the global market compared to the United States.
The trade war between China and the U.S. appears to have dragged Chinese tech giant Huawei into the picture. The White House accused the tech equipment leader of having products that are of high-security risks.
Huawei repeatedly denied the allegations and has since been trying to fight U.S.-initiated legal battles. The company's CFO Meng Wanzhou is also still on house arrest in Vancouver, Canada after Canadian authorities took her under custody upon Washington's request.
Meanwhile, despite the trade truce that Trump and Chinese President Xi Jinping agreed on at the G20 Summit last weekend, some firms have announced that they are pushing through with plans to relocate away from China as they escape Washington's tariffs.
However, it is not surprising that these companies moving out of China are not relocating in the U.S. One of the main reasons is added costs instead of reducing expenses. The Chinese market offers cheaper operative processes and labor compared to the United States.
Most companies are signaling a move to Vietnam while others are reportedly considering moving to other ASEAN countries.