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Current X-ray of the trade war between China and the United States


This is how the commercial war between the United States and China has evolved since last May: we review numbers, movements between powers, tariffs or sales.

We have been with the term commercial war since May in most conversations that are made regarding the state of the technology industry. Since Donald Trump vetoed commercial relations with Huawe, it seems that everything has changed, and at the same time nothing has. However, beyond the sensations that are had, the numbers indicate movements.

After three months and with the commercial war on hold, we are in the era of propaganda. Donald Trump says he has the Chinese economy in his hands, while the companies in that country transmit a more relaxed image. Because beyond Huawei and its fall in sales, there are companies such as Alibaba and Tencent, whose turnover is comparable to US giants, who have not been as resentful as it is presumed.

Both Alibaba and Tencent expect a 2019 with gains while the Asian technology sector accuses a decline. The reason is quite clear: the bulk of its benefits come from China.

Manufacture and sell in China

If the industry is created and marketed in a country, international pressures and tariffs lack all the impact Donald Trump would like to impose. In that factor lies one of the main differences between the United States and China, since the United States market does not show growth symptoms similar to those of the Asian country.

Tencent's biggest problems today are in the Chinese government itself and the problems it is putting on the market to sell some of its games because of its high violent content. Approving an average of 200 games per month has happened to do so in only 50.

Moreover, according to Chinese strategic reports, they value the separatist movements that exist in some regions as more dangerous than US pressure. Meanwhile, from the United States, China is seen as the great enemy of the national economy from almost any ideological rank.

Not everything is hardware

As Apple is currently experiencing a drop in iPhone sales, technology companies receive much of their income from other areas, such as games, cloud storage or applications. Alibaba is expected to announce in the coming weeks a significant increase in its revenue in recent months thanks to these areas.

The Tencent market is growing in numerous directions within the country, from WeChat to services such as courier services, food delivery, vehicle sharing applications and many other businesses that are already around us but have not yet fully addressed their country.

With all this you can see how the United States lives from the continuous commitment to new approaches and technologies that replace the previous ones, while China and its vast population is a more virgin market where businesses are established that have been shown safe in other countries.

As you have seen in the past, Donald Trump is an entrepreneur who has always risked and obtained different results, from triumphing to bankrupt his companies. This perspective of direct competition is the one that tries to impose between both countries, although it has not yet reached the Chinese economy everything he announces. The commercial war is expected to continue and take new turns, we will see who wins.