“Better Dead Than Red”
You’d be hard put to find two prominent individuals as ideologically opposed as President Donald Trump and investment legend George Soros.
But there seems to be one thing they agree on these days: China is a threat.
Trump ran on a “fair trade” platform, promising to level the playing field for U.S. manufacturing workers.
In office, he’s been cracking down on the theft of American tech IP and has been pushing to restore or maintain U.S. leadership in technology.
Trump’s No. 1 Target?
Now Soros has joined the chorus, calling the Chinese government — and Chinese technology — a threat to what he calls “open societies.”
Soros believes that in the hands of a repressive regime like that of Xi Jinping, new technologies become a means for control. They don’t liberate, they repress.
At the World Economic Forum in Davos, Switzerland, Soros called China’s growing mastery of artificial intelligence and machine intelligence a “mortal danger” to its citizens and the world.
It appears that a consensus is emerging across the political spectrum. China is a major threat, especially regarding its use of technology.
The Trump administration has taken this threat seriously, and not just with tariffs. Trump has blocked technology transfers to China, is blocking the American market to Chinese tech companies like Huawei and much more. He’s made leadership in leading-edge tech fields a priority.
Unified by a Common Enemy
The idea that someone on the polar opposite end of the political spectrum like Soros takes the same basic anti-China position regarding technology cements policy in the U.S. going forward.
This strikes me as very much like what happened after WWII in the U.S. A consensus emerged from both major parties and united them for decades. That consensus was the containment of Soviet Russia and communism. Disagreements, such as they were back then, were more about the hows and not the whats.
To a large extent, the Cold War was won because of American technological superiority. The Soviets bankrupted themselves trying to keep up with a growing U.S. lead in semiconductors and their military applications.
Now you’ve basically got Trump and Soros on the same side regarding China.
In my mind, this week marks the beginning of Cold War II.
And along with that could be huge boon in profits as U.S. tech companies try to keep the edge, meaning the chance for major wins with tech stocks too.
More on these developments in the coming weeks. Stay tuned.
For Technology Profits Daily,
Chief Technology Expert, Technology Profits Daily