Cambridge entrepreneur and VC investor Dr Hermann Hauser has urged non-American technology businesses to stand firm against bullying from the White House in the bitter trade war between the US and China.
Angered by Arm (the company he co-founded) being forced to end its relationship with Chinese ICT giant Huawei, Dr Hauser says standing firm against US president Donald Trump is crucial to the future export success of non-American technology companies.
Dr Hauser, co-founder of Amadeus Capital Partners told me: “I consider this an extremely serious issue for Europe and any other non-American country as it is a question of sovereignty which we must not compromise on.
“At present we have no option given the legal situation. The solution is to design out American IP and stand on our own two feet unless we want to become vassals to the ESG (Extremely Stable Genius) as Trump describes himself.”
Dr Hauser believes that Arm and US companies like Google and Apple will suffer long-term if America continues its ban on Huawei technology. He said the ban would be “quite damaging” in the short term for Huawei but “incredibly damaging for Arm, Google and others – and the American technology industry” in the longer term.
Some of Arm’s product is US-centric – hence the company has had to obey the White House trade mandate. But Huwaei is already ramping up plans to design its own chips from a new R & D hothouse in Cambridge and has potential fab factories galore back home.
Dr Hauser believes that unless the US takes the heat out of the China trade war customers around the world will limit their exposure to products containing technology originating in the US – and that includes some Arm output.
He says: “Every single supplier in the world will start thinking of how to reduce the threat of their production being terminated by an American president.
“All the discussions I have with companies in Europe at the moment are about them going through their intellectual property portfolio and designing American intellectual property out, which is terribly sad and destructive.
“Every company in the world must now be thinking: ‘Do I want to be in a position where the American president can shut me down?’ When I talk to people in the industry, they are being very careful about not buying American products.”
Arm is staying out of the direct US-China firing line but Business Weekly understands the superchip architect is simply keeping its powder dry.
“We are watching the situation very closely, engaging in dialogue with policymakers and hoping for a swift resolution,” an Arm spokesperson said.
