China trade deal leaves tech industry hanging

The trade deal that President Donald Trump and Chinese Vice Premier Liu He signed left the tech world clamoring for more. Industry leaders praised the deal’s progress on forced technology transfers and intellectual property theft in China and expressed optimism about its next iteration. But they were also quick to point out how the agreement fails to address key concerns and noted that the remaining tariffs would continue to interfere with supply chains, drive up costs and hurt market access for tech companies. “Some of the thorniest issues confronting innovation-driven industries are still on the table, including the lavish industrial subsidies China showers on its companies, including its state-owned enterprises,” said Robert Atkinson, president of the Information Technology and Innovation Foundation. He added, “China has shown itself to be a master of obfuscation when it comes to living up to its agreements.” IPC, the electronics manufacturers association, added that the deal does not address cybertheft or the tariffs still hampering their industry.

The phase one terms partially walk back tariffs on some tech gear (like TVs, smart watches, smart speakers and earbuds) and postpone duties on others (like smartphones, tablets and laptops). But tariffs remain for tons more products, including chargers, power adapters and desktop computers. “Market uncertainty remains until we see permanent tariff removal,” said Consumer Technology Association President and CEO Gary Shapiro. The group hopes phase two “will eliminate special tariffs on Chinese imports once and for all,” Shapiro added, a view echoed by ITI President and CEO Jason Oxman. The result is increasing frustration among some American businesses and technology companies who feel Trump is trading away hard-earned leverage in exchange for an agreement that does little to resolve the systemic issues that led the White House to begin imposing tariffs against China two years ago.