Silicon Valley’s loss will be China’s gain

THERE are no winners from a prolonged trade war. But if this drags on, President Donald Trump could see China’s tech sector weather the blows much better than Silicon Valley.

While US companies are working to navigate the multilateral tariff battle instigated by Washington, Beijing will no doubt seize the opportunity to gain an edge in key technologies such as artificial intelligence (AI), and end up setting global standards for its use.

Global tech stocks on both sides of the Pacific have taken a beating since last week’s “Liberation Day” blitz and China’s response of 34 per cent reciprocal duties. As Trump threatens further retaliation, China has vowed to “fight to the end”. The uncertainty is hard on both investors and business leaders, and has already inflicted lasting damage to industry ambitions.