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Citing spillover, Silicon Valley execs call for truce in trade dispute

By LIA ZHU in San Francisco | China Daily Global | Updated: 2019-06-20 23:20
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Business leaders in the Bay Area are calling for a quick solution to US-China trade tensions, which are spilling over into the technology space.

"There's a lot of tension from where we are in the Bay Area, and it's been disruptive, no doubt," said Alex Foard, director of global programs at the Bay Area Council, a San Francisco-based business association.

Though the businesses in the region "doesn't necessarily feel a great deal of clear restriction or clear reduction in opportunities", uncertainty is the most disruptive thing, particularly for a startup looking to access the Chinese market, said Foard.

"We had people just not really want to pursue projects in China and Chinese businesses not want to pursue projects in the US. It's not sure what's going to happen," he said. "There's not a lot of clarity about what can and cannot be done. The tension itself can disrupt business."

The Bay Area Council on Tuesday received a delegation from China's Shandong province, including officials in charge of industry and information technology and representatives of several small- and medium-size companies (SME).

The two parties co-hosted a seminar in Fremont, California, to promote SME business exchange and collaboration.

"A good strategic partner can provide local expertise more than anything in China as the startups accelerate their access to the Chinese market," said Foard. "The Bay Area Council is now trying to maintain relationships with the local governments in China to at least keep the conversations going, so that when it's easier for Chinese companies to invest in the US again, California is a good place for them to do that."

Nikolay Sergeev, a clinical technology advisor based in Silicon Valley, was attracted to the seminar in hopes of finding a potential business partner in China to move some projects forward.

Healthcare is in high demand in China, especially in the inland cities, where there are higher rates of death from cancer than in the developed coastal cities, he said.

Last year, Sergeev visited Shandong to explore business opportunities. He said one of the five companies he represents has a great potential to collaborate with the seafood industry of Qingdao, a coastal city famous for producing seafood.

The Norwegian company Njorth Bio's technology can solve the problem of seafood waste by commercializing industrial enzymes and using them in cosmetics and other products, said Sergeev.

Conversely, it is important "for Chinese SMEs to be able to come to America with their product and America have open arms to welcome them", said Marilyn Librers, president of the China-Silicon Valley Association, which promotes investment between China and the region.

"In turn, manufacturing and things like that can go to China. I think that will help our nation, too," she said.

In April, Librers visited Wuhan, capital of Hubei province. "I see all these new industrial parks being built and they are small companies and they are so dedicated, so excited about their products," she said.

"Right now, everyone is kind of frozen — they are afraid to make a move in this situation," she said. "We'll have to see what Trump's next move is."

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