TAIPEI (Taiwan News) – The ongoing trade war between the United States and China is going to have a severe impact on global technology and innovation, says Taiwan Semiconductor Manufacturing Company (TSMC) founder, Morris Chang (張忠謀) on Tuesday (May 28).
Chang argues that in addition to U.S. tariffs on Chinese goods, the restrictions on Chinese telecom companies like Huawei are bound to result is major obstacles to technological innovation in both countries. This will result in a significant slowdown in the pace of tech development across the globe.
Chang shared his thoughts at a forum hosted by United Daily News in a conversation with the Senior vice President of the World Bank, Paul Romer. Romer, in his address, discussed how government intervention in the market inevitably leads to growth, since government can take the reins and direct market forces.
Chang used the current U.S.-China trade conflict as an example to criticize Romer’s view, saying that Romer is “only looking at the bright side.”
While many companies are just starting to feel the real impact of the tariffs imposed by the U.S., the impact on the consumer has yet to be felt in full, said Chang as reported by UDN.
Chang estimates that within one year, all income from the tariffs on Chinese goods will ultimately be offset by forcing the losses upon the importers and consumers, quickly erasing any perceived gains.
Additionally, the U.S. targeting the telecom giant Huawei, is also likely to stall the development of 5G across the world, says Chang.