The case involving Meng Wanzhou’s extradition to the U.S. illustrates the precariousness that U.S. allies must face when balancing their relations with the U.S. and China.

A technological cold-war seems to have arisen alongside the China-US trade war, but this may not be a sustainable long-term strategy. If this continues, wagers of the tech cold war can expect to face consequences.

If Chinese companies succeed in designing and deploying key technologies for 5G systems, they may reap a whirlwind of profits from not only the communications arena, but from a multitude of new technologies. Should China win the race for 5G, companies from the PRC could cut into the profits of American technology firms, and weaken their ability to develop cutting-edge products in related fields.

Companies around the world are already racing to develop the necessary 5G network technology, leading to new technological tensions between the U.S. and China. Given the continued demand for high-speed wireless connectivity and mobile devices, there’s a lot at stake for the companies that get 5G technology right and ultimately end up driving its deployment.