US needs to change course with bans of telecoms technology
- Donald Trump would be better off embracing Chinese innovation than persisting with a deeply flawed approach at a time of connected networks and global supply chains
The Trump administration’s assault on Chinese technology is unrelenting. China Telecom is its latest target, with American government agencies calling on the US communications regulator to terminate its authorisation to provide international telecoms services to and from the United States.
The argument is the same as that given for other firms, among them Huawei, China Mobile and ZTE – that they are linked to the Chinese government and are therefore likely to be involved in espionage on behalf of the state. It is a much-voiced accusation made without providing evidence underpinned by the reality that America is falling ever farther behind in the battle to overcome Chinese wireless dominance.
State-owned China Telecom is among the nation’s biggest mobile network providers and broadband operators. The group of US government departments, including state, justice, defence, homeland security and commerce, said in a filing to the Federal Communications Commission that there were “substantial and unacceptable national security and law enforcement risks associated with China Telecom’s continued access to US telecommunications infrastructure”.
But the Trump administration’s main target has been Huawei, the world’s biggest maker of telecoms gear and the present global leader in next-generation 5G equipment and networks.
China Telecom should be banned from operating in US, departments say
The White House claims Huawei has links to Beijing and has barred US companies from providing it with critical components, while urging other governments to exclude it from their 5G infrastructure.
But while Australia, New Zealand and Japan have complied, other governments recognise China’s growing economic importance. They are reluctant to sever links with the Chinese market and prefer doing business with both China and the US.
At the root of the US concern is that China has overtaken it in an industry it used to dominate and where 5G is involved, does not even have a viable competitor.
The next stage of global economic development may well hinge on 5G, which enables significantly faster speeds and greater connectability of multiple devices. Huawei is by far the most cost-effective and innovative provider and China Telecom and other Chinese telecommunications firms are well-equipped to provide services.
Trump’s strategy is deeply flawed; the US cannot persist in a strategy of bans. There has to be connected networks and global supply chains.
A wiser approach is to embrace Chinese innovation and push for a cooperative world. Huawei’s founder, Ren Zhengfei, has the right approach; he recently told the South China Morning Post he was inspired by the American political system and business governance. He acknowledged that only by learning from one another can there be progress and improvement.
