Dr. Hermann Hauser, a current Cambridge entrepreneur and venture capitalist funder, has claimed that many European companies and individuals are avoiding American technology, afraid that President Trump could pull the plug. Now, Hauser claims, Europeans are working to phase out American IP and to be more self-reliant.
“At present we have no option given the legal situation. The solution is to design out American IP and stand on our own two feet unless we want to become vassals to the ESG (Extremely Stable Genius) as Trump describes himself.”
Dr. Hauser believes that Google and Apple, in particular, will suffer if the United States issues a protracted ban on Huawei technology. Huawei has become one of the key targets the White House is targeting to pressure China into caving in the protracted trade war.
Hauser argues that if the trade war continues, many companies will start to look at ways to do away with threats to production and supply chains. This could mean cutting American technology firms out completely. As Hauser put it:
“Every company in the world must now be thinking: ‘Do I want to be in a position where the American president can shut me down?’ When I talk to people in the industry, they are being very careful about not buying American products.”
Markets across the world have been roiled by the trade war. Meanwhile, there is some evidence emerging that China’s economy has slowed down. The International Monetary Fund (IMF) recently lowered China’s GDP growth projections from 6.3 to 6.2 percent. The Chinese government has been using extensive stimulus measures to try to prop up its economy.