The CES 2019 gadget show, which kicks off Sunday, will showcase the expanding influence and sway of China’s rapidly growing technology sector. But some of its firms are stepping back from the spotlight amid rising US national-security concerns over Chinese tech and a trans-Pacific trade war launched by President Donald Trump.
Last year, a top executive of the Chinese telecom firm Huawei delivered a CES keynote address critical of AT&T’s abrupt cancellation of plans to sell a Huawei phone following espionage concerns raised by the US government. This year, Huawei’s chief financial officer was arrested in Canada at the behest of the US; Meng Wanzhou, daughter of Huawei’s founder, now awaits US extradition. No Chinese technology executives will deliver CES keynotes in Las Vegas this week.
There are fewer Chinese entrepreneurs buying up booth space to show off their latest technology — more than 20% fewer exhibitors than last year, according to registration numbers tracked by the South China Morning Post. Chinese firms still account for more than a quarter of the conference’s 4,500 exhibitors, second only to the US in sheer numbers. But some of the biggest names are taking a more subdued approach.
Internet company Baidu last year hosted a flashy event touting its self-driving software, but this year is sticking to a more conventional booth. E-commerce giant Alibaba is eschewing the big outdoor tent it helped erect last year in favor of quieter meetings marketing its voice assistant to business partners. The phone maker Xiaomi is simply skipping this year’s event altogether.
None of them are citing US-China tensions as a reason, but it’s hard to ignore the geopolitical backdrop — even with a 90-day “cease-fire” on tariffs set to expire in March. Trump struck a more conciliatory tone Sunday as American trade negotiators prepared to meet with their counterparts in Beijing.
The US and China have imposed import taxes on hundreds of billions of dollars of each other’s goods — and Trump has threatened more to come, including tariffs that could make devices like iPhones more expensive. The US is also exploring new export restrictions that would target industries where China is hoping to get ahead, such as artificial intelligence and robotics. And the Justice Department brought charges last month against two Chinese citizens it accused of stealing American trade secrets and other sensitive information on behalf of Beijing’s main intelligence agency.
