Economist GMAT Reading Comprehension Challenge #31

GMAT Reading Comprehension Challenge

Economist GMAT Reading Comprehension Challenge #31

Welcome to the Economist GMAT Reading Comprehension #31! Need some guidance? Here are tips for approaching the Economist articles.

Economist Article

Economist Article: TikTok and the Sino-American Tech Split


Paragraph Summaries

Over the past few years countless…

Financial trends in recent years have meant mutual success for American and Chinese technology in each others’ markets, despite predictions of rupture due to international tensions.

Yet if you examine the events…

The international picture of recent weeks is indicating, however, that a split may be inevitable. Several examples are cited such as the potential banning of TikTok and the sidelining of Huawei’s 5G networks in several countries.

The split is happening at two velocities…

The Chinese-American separation may be a little more painless on the software side of things due to both countries’ relatively low financial stakes in foreign markets.

Hardware is moving much more slowly…

The global integration of the hardware market, as opposed to the software market, will make the separation incredibly challenging and perhaps both slow and expensive to adapt.

If the splintering now seems inevitable…

It is unclear whether the rest of the world will align more with Chinese or American technology should the split occur. The annual expenses of the global hardware industry could also multiply as a result.

Primary Purpose

To weigh the implications of a possible future event.

Main Idea

A potential legal division of American and Chinese technology companies would likely have far-reaching, somewhat unknowable implications for the global hardware market.

Happy Studies

Hope you found this article interesting and helpful. Good luck on your GMAT Reading Comprehension – see you next time!