As the U.S.-China relationship deteriorates, several analysts warned the fallout will have major implications for every global power, along with tech companies that operate across their borders.
Analysts of the Eurasia Group said the “new virtual Berlin Wall” will push world economies to choose sides. Traditional US allies such as Taiwan and South Korea may tilt toward China because they supply cutting-edge semiconductors Chinese firms rely on to compete with global rivals.
The analysts added, “Both the US and China have demonstrated they’re willing to weaponize global trade and supply chains.”
Global tensions are also causing countries to view tech firms as “national sectors, and not global actors,” said Samm Sacks, senior fellow at Yale Law School’s China Center.
She added, “It’s the idea that a tech company is going into a market on the other side of the world, and now is being asked to carry the flag of the country.”