India heavily depends on software consulting and BPO exports for its foreign currency (over 100 billion usd per year).
If China really wants to retaliate, it can sanction the WITCH companies and force any multinational who wants to be in China to not use them. This will also benefit competitors in other developing countries like Phillipines or Pakistan.
India is playing with fire here. Especially dropping out of RCEP, the risk being encircled economically.
This has the potential to backfire hard if other countries decided to use the same reasoning against FB to demand data, feed algo, management and employee localization in country.
Hopefully this becomes a wake-up call to investors in China tech. Instead of funding another social media app, they should invest in core technologies like semiconductor manufacturing equipment.
The success of the STAR market is a good start. Hope the momentum can sustain this decade, then we may see the tables turned.
This article was very disappointing. The author writes like an American neo-con warhawk who fantasizes about the entire world and tech industry choosing US over China thus isolating and containing it.
China trying to move up the value chain so hard-working Chinese citizens aren't stuck working in sweatshops forever is treated as a mortal national security threat that the whole word must unite to stop. Luckily private American tech-firms and non-Anglo countries don't buy this BS and wants to establish a win-win relationship and don't want to pick sides.
The latest Huawei escalation has shown the entire tech industry that US supply chain can't be trusted. If I were TSMC I would be looking hard into how Japanese semiconductor equipment can substitute all American ones.
In fact in consumer goods, foreign companies have more market share in China (40%) than the US (26%).
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