US-China Trade War: Tensions threaten to derail tech ecosystem
Updated 16:24, 28-Oct-2018
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The growing trade tensions between US and China could threaten the world's technology ecosystem that has been established these years. Some China-backed innovation centers along the US western coast may be the first to bear the brunt. Mark Niu went to one of such companies in Silicon Valley to find about their concerns.
Startup founder Ethan Schur is using what he calls the world's most accurate toothbrush.
"If I brush to the left or right, now you see how accurate that is."
Grush uses Bluetooth and motion sensors to turn brushing into a video game for kids allowing them to brush away monsters and send brushing data to both parents and dentists. Brushing Grush is currently headquartered in Silicon Valley's ZGC Innovation Center, which is backed by the Beijing city government.
ETHAN SCHUR FOUNDER & COO, GRUSH "I get invited on all-expense trips to China to do business maybe twice a week."
Mark: "Because you are here."
Ethan: "Yeah, because we're here we have so many great opportunities that at this point, we look at each one and we see which one could be the most effective."
MARK NIU SILICON VALLEY "The growing ties between China and Silicon Valley are evident on the street. Just down the road from ZGC, you'll find the Shenzhen Bay Innovation Centre. And drive a few minutes in that direction and you'll find Q Bay Center, which is backed by the city of Hangzhou."
In fact, Schur is the only non-Chinese at Grush, which also has another headquarters in China to focus on manufacturing and building the market there. In the US, Grush sells directly to consumers, while in China, it integrates its chips into Chinese brands.
ETHAN SCHUR FOUNDER & COO, GRUSH "They're talking about IP theft and all sorts of things. But that's not really a concern over here. It's not who is gonna steal my IP. It's about who is going to help me develop my product, who might buy my product."
ROBERT MERGES, PROFESSOR BERKELEY CENTER FOR LAW & TECHNOLOGY "I have a student from Beida. And she did some research that shows that foreign overseas non-Chinese IP owners actually do better in Chinese courts than Chinese IP owners. And all the Chinese IP institutions in China are developing very quickly. And I think they're doing that not because of pressure from overseas, but because it makes sense at this point in China's domestic economic development."
Merges is concerned the Committee on Foreign Investment in the United States could expand its traditional role of reviewing defense security-related acquisitions to economic security deals, involving everything from joint ventures to licensing deals. He says that could not only disrupt the flow of investment capital, but also the flow of talent-like the Chinese students who help build companies in China and the US.
ROBERT MERGES, PROFESSOR BERKELEY CENTER FOR LAW & TECHNOLOGY "So, when you look at a map of the top internet, e-commerce companies in the world, they are clustered along the Pacific coast of the US and the east coast of China. It's not a coincidence. I think both governments need to be very careful that in the middle of this trade war they don't damage the ecosystem that has benefited both countries."
Merges says some key areas the U.S. may be restricting are ones that should be the most open. He says the fields of AI and autonomous vehicles are ones that benefit most when companies and countries share what they've learned. This accelerates innovation and where self-driving cars are concerned that could help avoid accidents.  Mark Niu, CGTN, San Jose, California.