US crackdown on Huawei poised for failure

By Wen Sheng Source:Global Times Published: 2019/5/22 19:53:40


Illustration: Luo Xuan/GT



As pundits foresaw a year ago, the initial trade tussle between the world's two major powers has veered toward a full-blown technology war. What motivates the Trump administration to accelerate the battle is its belief that by inflicting as much pain on China as possible, Beijing's dream of climbing up the high-tech economic ladder will be throttled. 

Ordered by the Trump administration, a slew of US high-tech companies, including Google, Intel and Qualcomm, said they would move to cut off their supplies and services to Huawei Technologies of China, the world's flagship 5G leader. 

Following its earlier targets of ZTE and Fujian Jinhua Corp, a major Chinese chipmaker, the Trump administration obviously wants to pummel and ruin Huawei to remove a Chinese technology titan that rivals US companies in the global market. America's jitters about Huawei have been rising ever since 2012, when Huawei's 4G-LTE-TDD mobile technology succeeded, winning market share across Asia, Europe, Africa and beyond. 

Following its 4G surprise win, Huawei has significantly ratcheted up investment in new technology research and development. Now the company, with business networks in over 170 countries and regions, is the world's largest and also the most advanced 5G equipment maker, the second largest smartphone and tablet manufacturer, and now is miraculously growing to become a heavyweight high-end chips maker. 

Appalled at Huawei's meteoric expansion, a group of hardline US politicians is crying that the wolf is coming. It is not enough for the US to ban Huawei's 4G and 5G gear and devices from its marketplace. The Trump administration is now launching an embargo on the Chinese technology company in its venomous desire to strangle the company. 

Some US media reported that President Trump himself convened a special meeting and ordered the crackdown on Huawei. As a result, tens of millions of Chinese people were awakened and aghast, vehemently opposing the bullying by the US and voicing their support for the tech giant to fight Trump's move. Relying on its 5G advantages, its entrenched technology reserves and strong finances, Huawei is poised to weather the Trump assault. 

A US newspaper has explained the escalation of the Trump administration's trade war with China. Even if all bilateral trade issues were resolved tomorrow, China is still racing ahead in scientific investment and progress, which "poses an increasingly urgent challenge to US technology supremacy," it warned. 

Consequentially, it is imperative for the Chinese government to do all it can to give Huawei a firm supporting hand, for what the US government has done is heinous and hits the lowest ethical base in its history. When necessary, the Chinese authorities could resort to terminating rare-earth supplies to the US as a retaliation weapon.

Meanwhile, China should stick to its technology investment strategy and prop up the "Made in China 2025" plan focused on building up the industries of the future and strengthening Chinese enterprises' competitive edge. As a premium industrial development guideline, the "Made in China 2025" plan sets its sights on 10 strategically and technologically important sectors, including information technology, biotech, robotics, aerospace and clean-energy vehicles. 

From the brutal trade and technology battle of the past 10 months, there is an increasingly clear lesson for China: the central government should keep an eye on the potential threats and weak points in the environment that Chinese companies are facing.

For instance, the National Development and Reform Commission or the Ministry of Industry and Information Technology must have the means to know what is urgently needed and frequently imported by China's high-technology companies. Also, the General Administrations of Customs must report to the cabinet what types of commodities are imported in large quantities - be they chipsets or soybeans. 

Concerning the protection of high-profile Chinese citizens, the National Immigration Administration, the Ministry of Public Security and the Ministry of State Security should work out a scheme and keep extra eyes on a list of prominent Chinese citizens. 


The author is an editor with the Global Times. bizopinion@globaltimes.com.cn



Posted in: INSIDER'S EYE

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