The economies of the USA, Europe and China are more integrated than ever before. Frictions in geopolitics will lead to more potential conflicts. Think of the US sanctions of Nordstream 2 to Russia, US-sanctions on Iran, public opinion in Europe towards China leading to a boycot in China of Western brands like H&M, Adidas and Nike, the doubts on Huawei and much more.
Covid-19 has made clear how dependent Europe is on China.The tensions are growing between Europe and China on digital security and economic power. Security experts across Europe have great worries of the connection of Chinese multinationals with the State. The Dutch Intelligence Agency AIVD already reported in 2019 on “China’s Offensive Cyberprogram – The perfect business model for nations”, as the biggest threat of economic espionage. Europe already is very dependent on Chinese technology.
The Trump administration has decided that the listings of China Mobile, China Unicom, and China Telecom must stop in January 2021. It’s expected that President Joe Biden will not change this action. Reason is that these Chinese multinationals are connected and controlled by the Chinese Army. The market value of these three telecom companies dropped in December 2020 with US$ 50 billion. A similar decision has been taken on Huawei last Summer, however also in the UK, Sweden and Australia.
The authorities in China, in case the Chinese Communist Party CCP with 85 million members, wants completely control humanity in imperceptible ways by AI digital brain connected to the internet and all networks operating on 5G and the coming 6G. It’s called Artificial General Intelligence. The network 5G is currently built and will make robotics operational. The millions of surgical masks and other medial devices supplies from China is part of the CCP Propaganda.
In the previous post “Companies compete in arenas, not in sectors of industry” we explained how crucial it is to go beyond an industry analysis towards analyses of arenas. This means it is no longer enough to look at the industry sector in which your company competes. A further step Is required, namely conducting an analysis of the ‘competitive arena’.
In the previous post “How do we manage disruption?” we described how Nokia’s market position in 2010 was compared with a blazing oil platform leaving employees the choice of either jumping into the water even it was 100 meters deep and freezing cold, or staying on the rig and getting burned. In 1996, Intel’s Andy Grove of Intel published “Only the Paranoid Survive”.