US short-sighted in politicizing business issues

By Hu Weijia Source:Global Times Published: 2019/6/13 21:08:40

A dispute over patent fees between Huawei and US carrier Verizon has suddenly taken center stage following US President Donald Trump's restrictions on the Chinese telecom giant. As the US-China trade war escalates, Washington should avoid intervening in and politicizing commercial disputes.

Huawei has told Verizon that the carrier should pay licensing fees for more than 200 of its patents, the Wall Street Journal (WSJ) reported on Wednesday, citing people familiar with the matter. No further details were released but the case has aroused widespread concern among people who are following the trade war.

A Verizon spokesperson was quoted by the WSJ as saying that the issue is a potential legal matter. The patent fee dispute should be resolved based on international laws and practice, without intervention from either Washington or Beijing. We believe it's what both American and Chinese companies want to see, because the politicization of an economic issue can do nothing but complicate the situation. 

It is not clear yet whether the patent licensing issue will involve more US companies such as wireless carriers Sprint Corp, AT&T Inc and T-Mobile. 

As of March, Chinese companies accounted for 34 percent of worldwide applications for major patents related to 5G technology, the Nikkei Asian Review reported, citing statistics from Germany-based IPlytics. 

If the US government bans Chinese-brand equipment from the country's 5G networks, how should US companies use patented technology in their products? 

The question should be answered based on the rule of law rather than the rule of geopolitics.

The case may create a demonstration effect for latecomers. If Washington unilaterally intervenes in a commercial dispute, or ignores international laws and relies on domestic regulations, China should be prepared to take countermeasures to protect the legitimate interests of Chinese enterprises. If the issue is mishandled by Washington, we may see an escalation of the trade war.

We don't want this scenario to become reality, especially ahead of the G20 summit in Osaka, Japan, later this month in which trade issues are likely to be highlighted. The licensing fee dispute is only a demand for patent fees and shouldn't be used as part of the geopolitical battle between China and the US.

Despite a substantial rise in trade tensions, we still hope US companies and Huawei can achieve common development because the Chinese giant's alliance with the US telecom industrial chain is indivisible. The short-sighted US actions to exclude Huawei from its 5G construction will hurt both itself and others.

The author is a reporter with the Global Times. bizopinion@globaltimes.com.cn



Posted in: EYE ON ECONOMY

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