Huawei and the technology cold war
The title of this article is Huawei and the technology cold war; China v America Trade without trust, and was written on Jul 18, 2020. Close to nineteen years ago an unheard of Chinese group set up an ambitious project that saw them form Huawei. It is a leading global provider of telecommunications infrastructure and sells smartphones to almost every part of the world. Its razor-sharp prices have seen it rise with sales to the tune of $123bn. However, 2018 Huawei has been on the receiving end of legal assaults from America, and later on, other countries joined forces to come against the technology giant due to spying allegations. This text hence seeks to shed light on the war between China and other countries and the core issues that bring about the Huawei controversy.
The article focuses on how the accusations started and who the major players were in this trade war. It shows that it all started with President Trump who spoke against the alleged spying software and that China wanted to make Huawei users more dependent on subsidized Chinese technology. Regardless of the measures that the US was ready to make more than 170 countries agreed that the risks were manageable. America’s security chiefs had been hot on Huawei’s tail making them come with a team of intelligence experts to monitor the devices with a view of checking if indeed there were some questions to be answered by the company.
It later follows a call from Trump who urged other countries to dump the company’s products. The writer also goes to show that the true cause of this war was due to the decay of the world’s trading system. The text also shows the failure of the World Trade Organization (WTO) and its failure to evolve with the digital economy. The writer also shows that it may be of importance for the world and more so America to figure out a way in which it can work with China rather than being at each other’s throats almost all of the time. It also showcases Huawei’s failure to reassure cyber experts that want the company to reform their software which gets harder to monitor with time.
This article has lots of lessons embedded in it, one being that regulatory bodies need to be formed to combat any breach of privacy for consumers. Additionally, it extensively shows us the repercussions of a company violating rules and how that could mean big losses for it. With the fight beginning in the US and continuing to Britain and other European countries it is clear that there is a cold war and the true villain is not known. The writer directs us to see that also China could ban German cars or phones which come with software and sensors. With that said there is a clear lesson that the world should learn to negotiate and discuss issues and come to an amicable agreement which will see all countries treated equally as there is no need to be at odds with each other.
The looming ban on Huawei products is a pressing issue on a global economical stage. The continued wars between the US, Britain, Germany, and other countries will see a rise in wars between the world more or less with the Asian giant China. The article comes with the information on how Mr. Trump over time in a way has sought to bring down Huawei. With several attacks on the company it only seemed reasonable for Britain to follow its ally and also impose bans on Huawei with the latest being that they want to block Huawei in the big move to 5G technologies.
Also, this made many European companies including Germany start thinking about banning Huawei products. The argument seen here is that ripping out Huawei from the European market will be tolerable. Additionally, it is clear that with Western suppliers like Nokia and Ericsson the gap left would not be that big. Experts also argue that the gap will bring a rise to more competition and new firms that would easily fill the Huawei’s current space in the European market. With that school of thought and no looming danger for the European market, the writer clearly shows that removing Huawei from the European market may not be that hard after all.
It is clear that from the concerns raised by the Americans other firms may also be caught in the crossfire. This includes TikTok which could be banned in India and possible in the US. Moreover, there is talk that some Chinese lenders may be banned from dealing in dollars. China also has not taken these bans lightly as they have also imposed their bans on Lockheed Martin for trading arms to Taiwan. From such facts, it is clear that the ban on Huawei will lead to a chain of events that will see the country fight against another country. These ripple effects will then cause a lot of upheaval on the global stage that may in the end be catastrophic for the economy.
Whereas many may take the ban on Huawei lightly the writer portrays repercussions when it comes to fighting an economic giant like China. For one, China carries up to 13% of world exports and 18% of world market capitalization not forgetting that it is a dominant force in Asia. That clearly shows the gravity of being at war with such a force thus bringing the need for a new regime that sees China for who they are and tries to figure out a set of universal rules that will see the world dealing with China amicably. The fiasco that we see that arose from the embargoes and tariffs imposed by America will not work and another more agreeable path should hence be chosen.
In an age of sheer mistrust, the million-dollar question then is how should the trade architecture be constructed to suit all parties regardless of their vast differences? In truth, the goal of such a structure should be designed in a way that is consistent with securities of all parties. A good way to go about it would be to close all flashpoints like technology which are known to generate a lot of tension among countries. All of the facets should be considered an international certification should be formed and inspections and monitoring should be put in place. That will at least allow economies to flourish in as much as it may not be flawless.
A key piece of information in this text is on the importance of China to be more open to governance over their huge subsidiaries in the western part of the world. These should include shareholders, directors, and managers who have autonomy. This will help create a sense of trust due to the openness of the transactions which will help other countries be at ease with Chinese products especially those of Huawei. From pioneers like Unilever, it is something that can be done and will bring significant change to the world economies. If it has been done then China would be wise to follow suit and create a sense of trust around its products.
This article clearly shows the effects of a lack of transparency on the part of firms and the need for international rules and regulations that should be followed by all companies. It is also clear how a global leader would affect the decisions of other countries and the importance of having autonomous investigations and monitoring of companies that come under constant scrutiny. With that kind of openness exuded by multinationals like Unilever then it is clear that foreign companies have a chance to thrive in various markets if they follow a set of guidelines.
This article is interesting concerning the ongoing wars among many countries and the various resolutions that are reached which are normally not as effective as they are intended to be. In the text, it is clear that to the eyes of many the ban on Huawei seemed more acceptable than them allowing spyware in their country. That raises eyebrows as to the credibility of these allegations and whether it is merely a witch hunt on Huawei and more so China. It is interesting to see how all these countries battle it out and how China retaliates with their bans causing major economic upheaval for some countries.
Societies should work in unison and corporate with each other which forms a calm atmosphere where business most thrives in. However, there cannot be any use of force as that has been proven hitherto to be ineffective. The West should, therefore, act together with China and figure out a way to work together amid all the mistrust between both sides. In as much as Huawei has been on the receiving end, regulations should be put in place and reasonable solutions through dialogues should be reached rather than imposing bans and embargoes for more economic growth.