US-China rivalry could create two separate tech worlds

US-China rivalry could create two separate tech worlds
The trade war may or may not be on hold, but the tech war shows no signs of abating, CNBC reported citing Hans-Paul Burkner, Chairman of Boston Consulting Group.


U.S. President Donald Trump and Chinese President Xi Jinping offered international observers reassurances over the weekend that they could be moving closer to resolving their trade dispute; however, when it comes to technology both are on completely different sides.

Hans-Paul Burkner told CNBC on Monday that the different competing ambitions of US and China for technological dominance remain a major sticking point, and one that could lead to the emergence of two, separate tech ecosystems.

“There is still a possibility that we will really have two technology worlds: a Chinese one and a U.S. one,” the management consulting firm’s chairman said.

Such a divide would, in theory, see technologies, such as the internet, governed by separate institutions and even regulations based on the jurisdiction from which they are provided. In the context of the internet, that prospect has been dubbed the “splinternet.”

And already the U.S. and China have begun vying for support, said Burkner, speaking at the World Economic Forum in Dalian, China.

Burkner said the prospect of such a split remains far off, because China has a long way to go to win market share in the rest of the world. However, he said he believes it’s only a matter of time before Chinese tech giants like Huawei become real global players.

“At the moment, the Chinese are moving rather slowly into the rest of the world,” said Burkner, who added further that it will happen nonetheless.

In reference to the possibility of two tech worlds, he added: “Hopefully it will not come to that, but it’s not impossible.