Huawei’s equipment is not allowed to be used on US networks due to possible espionage threats. The Trump administration harshly punished ZTE Corp., Huawei’s smaller Chinese rival, for breaking sanctions and aggressively lobbied its friends to abstain from utilizing Huawei goods. Furthermore, because Fujian Jinhua Integrated Circuit Co. is suspected of stealing intellectual property from a US corporation, American suppliers are not allowed to do business with them.
The detention of a senior official at networking gear producer Huawei Technologies Co. intensifies hostilities in the already heated trade talks between the United States and China. This poses a direct threat to Chinese President Xi Jinping’s ambitions to make his country a global leader in technology.
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Huawei’s Key Role in 5G Dominance: President Xi’s Intervention and Global Impact”
In the growing competition between the United States and China, Huawei has been a focus point. In an effort to protect Huawei’s interests, Mr. Xi earlier ordered China’s antitrust agency to become involved in Qualcomm Inc.’s acquisition of NXP Semiconductors NV.With regard to the next-generation mobile internet networks that are going to transform communications, Huawei is a major player on the worldwide scene. According to reports, Mr. Xi intervened to stop San Diego-based Qualcomm from combining with its Dutch rival because he was worried about Huawei having a more formidable rival in the competition to control 5G networks.
Trade discussions are further entwined with Huawei and the nations’ technical competitiveness, as evidenced by the recent arrest of Huawei’s Chief Financial Officer, Meng Wanzhou, in Canada at the request of the United States. Although President Trump and Mr. Xi agreed to a temporary halt to tariff escalation, the scenario nonetheless strains bilateral economic ties.
Although the exact extent of Ms. Meng’s allegations is still unknown, her detention is connected to suspected violations of US sanctions against Iran. Huawei asserts that she was unaware of her misconduct. The Foreign Ministry of China has asked Canada and the United States to provide an explanation.
Clashing Narratives: China’s Tech Ambitions vs. U.S. Allegations
The director of the technological research group ChinaLabs, Fang Xingdong, condemned American moves, claiming they were an attempt to stifle China’s competitive rise for nebulous political reasons.Although Beijing says it is still working to have trade talks with the United States, the Trump administration claims Beijing has made concessions that Beijing has not verified. According to reports, these concessions cover things like trade secret theft and government assistance for tech firms like Huawei that are considered unfair trade practices.
Huawei has made significant investments in 5G research recently with the goal of advancing automated manufacturing, seamless communication, remote medical operations, and driverless cars.Hong Kong-based consultant Arthur Kroeber of Gavekal emphasized the United States’ complex approach that goes beyond tariffs to stifle Huawei’s international commercial activities.
Her detention represents a personal aspect of the U.S.-China confrontation, since Ms. Meng, as the daughter and possible heir of Huawei’s founder Ren Zhengfei, reflects the company’s competitive ethos within China’s rules. This is in addition to her function as CFO.
China’s strong backing for local enterprises in the 5G space is seen by the U.S. administration as a danger to national security. Chinese social media views Ms. Meng’s apprehension as a more action by the United States in its continuous competition with China.
Washington’s economic war against Beijing is centered on the “Made in China 2025” strategy, which promotes Chinese supremacy in cutting-edge sectors and is in line with the push for 5G.Mei Xinyu, an expert at a think tank connected with the Commerce Ministry, charged that the United States was using alliances to impose its internal rules throughout the world, calling this an example of American hegemony.