HONG KONG: Less than 10 years ago, all top 10 technology companies by revenue were American. Global telecom standards were set by US companies such as AT&T and Verizon. Today, by contrast, four of the top 10 internet firms are Chinese.
“There is an even bigger long-term risk facing the world economy than the current trade war. That is the very negative implications of the current US stance against Huawei,” notes Chris Wood, equity strategist for Jefferies in Hong Kong. That is according to an assessment of the prospects of the two national giants in a report on the 5G Ecosystem the board released in April.The report portrays a technological world in which the US, far from dominating, is in danger of becoming ever more marginal.
The companies or countries that are the first movers will set global standards. That in turn brings hundreds of billions of dollars in revenues, substantial job creation and leadership in any other technologies that require ever swifter transmission of data, the board notes. Part of the problem is lack of investment. China has spent US$180 billion over the past five years and has 10 times as many base stations as the US.