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Tag: Huawei

The Problem with Banning Huawei 5G Tech

So, the Huawei saga rolls on. The executive arrested, the daughter of the CEO, will probably wind up released, as it’s been made clear this is a political arrest.  (Trump has said so, and it’s over Iran sanctions. Breaking Iran sanctions is clearly political, and probably even the ethical thing to do in many cases.)

But something else is more important to note. Huawei genuinely has the most advanced net tech in the world. It’s that simple.

America no longer manufacturers telecom equipment – Cisco got out of the business several years ago – and Huawei’s two Scandinavian competitors are too little, too late, and too expensive…

the Shenzhen firm is spending $20 billion a year on R&D, about four times as much as either Ericsson or Nokia, its only important challengers in the telecommunications equipment market.

Huawei’s internal assessment holds that its technological lead in 5G mobile broadband is so wide that the competition has no effective chance of catching up. In late February, Huawei will introduce its Balong phone, with a chipset that can handle downloads ten times faster than the best 4G LTE speeds, while operating with 4G networks as well.

Or:

“China’s largest tech company makes high-quality networking gear that it sells to rural telecommunications operators for 20 percent to 30 percent less than its competitors do, says Joseph Franell, chief executive officer and general manager of Eastern Oregon Telecom in Hermiston…”

This is hopeless. It’s probably true that Huawei stole a lot of technology, especially in the 90s and the 2000’s. One of its victims was Nortel, Canada’s telecom giant, which makes me angry.

So what?

They have the technology. It’s cheaper and more advanced than anyone else’s and, hilariously, the US doesn’t even compete in this type of telecom equipment any more.

If this is a strategic matter, then the US has fallen down completely. If an industry is strategic, a country must make sure it, or a trusted ally, stays in the lead. Not only did the US not do that, but US policies from the 80s onwards effectively off-shored this sort of production and research, as a deliberate policy choice.

Now they cry?

5G is lost. If the US, or the US and its allies, want a shot at 6E they’d better figure out how to do industrial policy. That might, indeed, mean banning Huawei, but only if they’re willing to put up with worse, more expensive internet for a decade or so. (But then US and Canadian internet is already not nearly as good as the best.)

One of the key tenets of neoliberal economic policy is that it doesn’t matter where something is manufactured, or done. Let the cheapest domicile do it, and everyone will benefit.

This is bullshit, and always was. Making and designing new things is where economic strength, the good life and military power all come from.

Nations which forget this wind up in the dustbin. Free trade, as an ideology, is the deathknell of great powers, including Great Britain, and likely to include the US. It does work for smaller powers, and should be the default policy mode for all city states, but great powers are not small powers, let alone city states.

So, if the US wants to ban Huawei, it’d better figure out how it’s going to support Huawei’s competitors enough so that they at least catch up, or even consider making sure the US has its own telecom manufacturers. If it can’t do that, this is a band-aid on a wound.

(Oh, and there’s a reason the US, whose technology is used in most of the older telecom equipment, especially cables, thinks that China might use that to listen in. Mmmmm. What would that be?)


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What the Huawei Row Portends for the Future of America, China, and Canada

Huawei is a giant Chinese telecom company. It produces fifth-generation telecom equipment (5G), cell phones, and much more. Its 5G equipment is probably the most advanced in the world.

The US has accused it of espionage: Stealing commercial secrets. In the US, it is illegal for Huawei telecom equipment to be used for infrastructure, and the US is trying to convince other countries, especially European ones, to not use their equipment either. The rationale is that such equipment makes Chinese spying easier.

A while back, the US government asked the Canadian government to extradite a Chinese Huawei executive to the US. Her name is Meng Wanzhou, and she is the daughter of Huawei’s CEO.

Importantly, she was charged with fraud related to violating US-Iran sanctions, not espionage against American companies.

In response, China has mostly swung at Canada, arresting a number of Canadians and retrying a Canadian drug smuggler, increasing his penalty to death.

One of the US’s goals has been to separate the US and China: For example, the NAFTA rewrite, the USMCA, forbids any member from forming a trade deal with a “non-market economy” if either other member disagrees. (The US defines China as a “non-market economy.”)

It may or may not have been deliberate, but this request has made Canadian/Chinese relations much worse.

Note that the person being charged is pretty close to Chinese royalty. This is like if Steve Job’s daughter was a senior Apple executive and arrested. Imagine the furor.

But I want to highlight something else: This is about breaking Iran sanctions. (Which China did, though I have no insight into Meng’s involvement.)

The Iran sanctions were certainly legal under US law. They were not, however, in any way, shape or form, just. As with all economic sanctions they disproportionately hurt people not in the ruling class. They hit various medicines and caused a lot of suffering and death. The evidence that Iran had a nuclear weapon program was always dicey, and in any case, that America has the right to deny nuclear weapons to other countries is unclear.

So Meng is being prosecuted for a political crime. She is being prosecuted because her country decided not to obey US laws with respect to another country. US laws which are unjust on their face.

To me, at least, this is illegitimate. China’s counter-strikes are also illegitimate: Canadians should not be used as cats-paws in this, and China’s actual issue is with the United States, not Canada. That said, from a realpolitik point-of-view, I entirely understand China making the point that acting on behalf of the US in its near-cold war with China will have negative consequences.

This row has continued to accelerate. There is a fair bit of danger, in the medium-run, that the world is going to split into two economic blocs, and enter something close to a cold war again.

The US wants China to do what the US wants, which is for them to remain a regional power, not a great power, to not take control of its near abroad (as the US did in the 19th and early 20th century, in much more violent fashion than China has so far), and China, a rising Great Power (and potential superpower) will not be stifled in this way. No rising great power, certainly not the US, ever was or will be.

This road, though we are early on it, leads to war. There are things China does that are illegitimate, but its power will have to be accommodated, just as the US’s was. (Take a look at the map of the Canadian province of British Columbia, notice the Alaska panhandle: It is complete bullshit, and it was obtained because Theodore Roosevelt was willing to go to war to get it, and the British, preoccupied elsewhere, weren’t willing to fight him for it.)

As for Meng, she is clearly a political prisoner and pawn, as are all the Canadians that China has arrested in retaliation.

While it’s unlikely to happen, because Americans think they have the right to apply their law to anyone, anywhere and to kill anyone they want in most countries in the world, without even a trial, sensible politics would be to de-escalate this.

Locking up Meng, which is most likely (US prosecutors generally get their victims) will be a running sore. America is banking on Chinese fear outweighing Chinese anger. Maybe it will, for a time, but the Chinese strategic tradition also includes a hell of a lot of smiling at enemies until you can stomp them flat.

The US ought to think very carefully on that, and whether or not it really wants to go down this road, especially over such an unjust charge.

As for Canada, it is an American subject state, and, as the USMCA proved, when America gets serious, Canada does what it is told. I have explained this to Canadians for a couple decades now, including the need for an actual deterrent (it needn’t be nuclear), but Canadians think the US is Canada’s friend, not overlord.

This mistake, too, will continue to be punished.


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