SHENZHEN -- Foxconn chief executive Terry Gou today asserted that ongoing threats of tariffs between the US and China have their roots in technology, not trade.

The US has threatened to levy taxes of up to 25% on various China-made products, in response to what President Trump has deemed unfair trade practices and an excessive trade imbalance between the nations. The US has also banned or thwarted attempts by Chinese OEMs such as ZTE and Huawei to crack the US market.

In response to the escalating threats, Gou called the matter "not a trade conflict but rather a competition and comparison of technology."

Noting the US has a big technology leadership advantage over China in key sectors such as aerospace and semiconductors, Gou said, "If China is to catch up, it must be in the areas of manufacturing technology, design and manufacturing technology.... They are the real economy."

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