CHINA’S TECH SECTOR IS IN TROUBLE
[Note by JW: This “must-read” by Rothschild & Della Rocca offers strong evidence of the geopolitical genius of President Trump.]
Perched precariously atop electric motorbikes, swarms of e-commerce couriers zip through China’s cities. For upwards of 10 hours each day, they race to deliver packages and hot meals.
In high-rise office buildings, tech-company programmers are toiling just as hard. Coding frantically to meet a deadline, they hunch over keyboards well into the night.
Although they pull long hours, these workers are the lucky ones. At least they have jobs. Amid a protracted slump in China’s once white-hot tech sector, tech firms are resorting to layoffs and hiring freezes.
Many thousands of young college graduates and blue-collar workers, who used to count on tech-sector employment, are now scrambling to find work.
Just two years ago, the rise of China’s tech sector (often termed its “new economy”) looked unstoppable. Between 2014 and 2017, Chinese telecommunications giant Huawei doubled its revenue, and a whopping 34 Chinese tech startups topped $1 billion valuations. By one forecast, the new economy was on track to create over 1 million jobs annually.
But today, the once-prolific sector has reversed course: startups and tech giants alike have been reeling the past year.
What is going wrong?













