The Impact of International Price on the Technological Industry in the United States and China during Times of Crisis: Commercial War and COVID-19

The tension between the United States and China has not ended, despite the lengthy negotiations carried out in 2019 to appease differences and decrease protectionism over the technology industry, since the trade war was producing devastating consequences for both powers and international trade. The resurgence of tension is due to two main factors, such as mutual accusations about who is to blame for the origin of COVID-19 and the use of the new 5G mobile technology by Chinese companies like ZTE and Huawei. We developed an in-depth analysis of the consequences on international prices of the technology industry and international trade due to the reappearance of the trade conflict between China and the United States. This analysis will be carried out through the application of economic theories. There is greater distrust in the technology sector, and this produces a variation in the price of the technology industry. Likewise, according to Marshall’s law of demand and supply, this effect can be explained more accurately;since there was a lower demand for technological products, the digital industry will have to lower its prices to generate income. © 2021 by Emerald Publishing Limited.