IBM CEO on US-China trade war, tariffs

PARIS — Solving the question of “digital trade” is usually just as crucial to trade talks between the United States along with also China as conversations around resolving tariffs on physical goods, IBM CEO Ginni Rometty told CNBC Thursday.

“I’m hopeful in which these things get resolved,” Rometty told CNBC’s Karen Tso, speaking about trade tensions between the two countries. “yet I also say in which with all the talk about tariffs along with also the like around physical goods, some of what needs to be resolved are the rules around digital trade.”

Rometty defined such digital trade as the flow of data between countries, arguing in which the exchange of information was as important as lifting trade barriers when This kind of comes to physical imports.

“in which’s almost more important in which there be free flow of data across borders along with also there not be localization of data,” she said. “So those are all very serious issues to be worked on along with also I’m hopeful the trade talks address those things.”

Concerns have been raised by industry leaders over the potential for the U.S. along with also China to drift further apart when This kind of comes to data along with also the internet. Former Google CEO Eric Schmidt, for instance, has warned there could be a “bifurcation” from the internet, with one network led by America along with also the different led by China.

This kind of comes amid a spike in trade tensions between Washington along with also Beijing. The U.S. recently raised tariffs on $0 billion worth of Chinese goods to 25% through 10%, while China retaliated on $60 billion worth of U.S. imports. President Donald Trump has also threatened to impose levies on a remaining $325 billion worth of Chinese goods imported to the U.S.

The Trump administration also recently declared a national emergency over the threat to American technology, adding Huawei to a list in which would likely make This kind of more difficult for the Chinese telecom giant to conduct business with U.S. companies.