ArticlePDF Available

Huawei ban in the US: Projected consequences for international trade

Authors:

Abstract

On May 19, 2019, the US President Donald Trump made an executive decision of blacklisting the Chinese tech giant Huawei in US market. The paper aims to discuss the tentative alternative consequences of banning Huawei in US market. As a very recent incident, there is no literature available on this topic. The paper has used the published sources and attempt to predict the consequences of this decision. The author expects that this paper will be helpful in conducting further study in the areas of international trade and political economy.
International Journal of Commerce and Economics
22
International Journal of Commerce and Economics
Online ISSN: 2664-7540; Print ISSN: 2664-7532
Received: 05-02-2019; Accepted: 07-03-2019
www.commercejournal.in
Volume 1; Issue 2; April 2019; Page No. 22-25
Huawei ban in the US: Projected consequences for international trade
Md Sajjad Hosain
Business School, Sichuan University, No 24, South Section 1, Yihuan Road, Chengdu, Sichuan Province, PRC, China
Abstract
On May 19, 2019, the US President Donald Trump made an executive decision of blacklisting the Chinese tech giant Huawei in
US market. The paper aims to discuss the tentative alternative consequences of banning Huawei in US market. As a very recent
incident, there is no literature available on this topic. The paper has used the published sources and attempt to predict the
consequences of this decision. The author expects that this paper will be helpful in conducting further study in the areas of
international trade and political economy.
Keywords: huawei, us, china, ban, mobile set, consequences
1. Introduction
Amid tension of trade dispute between the US and China, the
US President Donald Trump signed an executive order to
blacklist Huawei in the US market. It means that the US
suppliers, partners and buyers of Huawei products and
technologies need to take permission from the US Trade
Department in order to conduct business with Huawei.
Furthermore, Google would no longer allow Huawei's smart
phones to use popular smart phone applications like Gmail
and Google Maps. Google was not the only company that had
cut ties with Huawei. American chipmakers such as Intel,
Qualcomm and Broadcom told their employees that they
would stop supplying Huawei (Bloomberg, 2019) [2]. In
addition, German chipmaker Infineon had also stopped
shipments to Huawei (Nikkei Asian Review, 2019) [11].
The Trump administration last week announced restrictions
that seemed aimed at Huawei. An executive order signed by
the president declared a "national emergency" and blocked US
companies from doing business with foreign tech companies
that pose "an unacceptable risk to the national security of the
United States." The Commerce Department said it would add
Huawei and its subsidiaries to a list of companies generally
prohibited from buying US technology. Trump's crack down
on Huawei, which has the support of the Chinese government,
comes amid escalating trade tensions with the country and
growing concerns that the Chinese government could
potentially use Huawei devices to spy on the US and its allies.
According to the Commerce officials in the US, Huawei was
added to the blacklist after concluding that the company was
engaged in activities "contrary to the US national security or
foreign policy interests." Huawei officials have denied those
claims.
After the Trump administration last week barred American
companies from doing business with Huawei, the world's
second-largest supplier of smart phones, shares of Google and
other technology companies dropped on Wall Street.
However, just a day after blacklisting Chinese technology firm
Huawei from buying American-made products, the Trump
administration is now easing up. On Monday, 20 May, 2019,
the US Commerce Department restored the Shenzhen-based
tech giant's ability to maintain its network, which means the
company can buy equipment and complete software updates
to support those who use Huawei smart phones, according to
a 90-day temporary general license issued by federal officials
(www.cnet.com).
2. Response from Huawei
Huawei made an immediate response after the ban. The
founder Ren Zhengei told Chinese state media that a clash
with the US was inevitable, and that it was only a matter of
time before Huawei threatened US interests. He said that the
individuals and families sacrificed a lot for the sake of an
ideal, to stand at the world and the conflict with the US was
inevitable sooner or later (South China Morning Post, 2019)
[13]. Ren said the 90-day reprieve from the US government
meant little, because the company was prepared for the
possibility that it might lose access to American companies.
He further stated that the current practice of US politicians
underestimates their (Huawei) strength (BBC, 2019) [1].
In March 2019, Richard Yu, CEO of Huawei's consumer
products division, told a German newspaper that Huawei had
prepared its own operating system in case it lost access to
Android. He branded it as “Plan B". However, he told that the
company still prefers to work with the ecosystems of Google
and Microsoft. The company has stockpiled enough chips to
keep its phone business running for months (Bloomberg,
2019) [2].
Although, Huawei is a private company enlisted in Shenzhen,
China, it has close interaction with the Chinese central
government. Moreover, it is the largest mobile manufacturer
in China employing thousands of staffs not only in China
itself, but also around the globe where it is being operated.
Therefore, it can be logically believed that the Chinese
government will also take some counter measures against this
ban that will be discussed at the following sections of the
paper.
International Journal of Commerce and Economics
23
3. The story behind Huawei ban
3.1 Huawei, 5G and the security debate in the west
The acceleration of the national security dispute around
Huawei has caught a number of 5G enthusiasts off guard. The
United States, Australia, New Zealand, Japan, Germany and
the Czech Republic, among the nations that have imposed
restrictions on the use of Huawei 5G solutions over national
security concerns and the many European countries are
thinking whether to follow such decision. To Sum up, such
worries are rooted in the ties between Chinese
communications technology companies and its intelligence
services, reinforced by China’s political and legal
environment requiring cooperation with intelligence agencies.
Perceived or real, fears persist that adopting Huawei, 5G
technology will introduce a significant dependence on
equipment that can potentially be controlled by the Chinese
intelligence services and the military in peacetime and in
crisis.
Chinese technology companies have become significant
players in the global market because of their clinch of
innovation and the notable improvement in quality and
affordable cost of their products. However, the legal and
political influence of the Chinese state over its technology
industry and ties between the government and the companies
leave the Western countries uneasy. China has made no secret
of its adversarial perception of the west and has been actively
seeking a stronger global influence. As already noted on the
precious section, the US administration and officials always
doubted Huawei for spying through the electronic devices that
it deals in.
3.2 Is it just Huawei
While Huawei stands in the limelight due to its advanced 5G
capacity, the issue is not just about Huawei. Many states are
likewise concerned about other Chinese communications and
video surveillance technology manufacturers, primarily ZTE,
but also Hytera Communications Corporation, Hangzhou
Hikvision, and Dahua Technology, all of whose technology
has been banned from use in government networks under US
law (Kaska et al., 2019) [8].
3.3 Is really a security concern or a political economic
decision
The rise of Huawei is an example of the Chinese national
policy of technological superiority: the past few years have
seen the company grow into the largest telecoms equipment
manufacturer in the world. In 2018, it passed Apple as the
second largest producer of smart phones after Samsung (The
Guardian, 2018) [15]. It is currently the only company that can
produce at scale and cost of all the elements of a 5G network,
whereas its nearby competitors Nokia and Ericsson not yet
able to offer a viable alternative (CKGSB, 2019) [4]. Huawei’s
ambition is to dominate the market for 5G wireless
communications (Frank & Sharon, 2018) [6] and has
established cooperation with telecommunications companies
in a number of countries in Europe and worldwide.
Huawei and other Chinese telecommunications companies
have obtained a visible and active role in the development of
global 5G standards and have acquired a significant
proportion of core patents for 5G. China currently holds an
estimated 10% of the ‘5G-essential’ industrial property rights
in radio access solutions where Huawei has the most patents,
followed by ZTE. Chinese influence in the global standards
organizations (ITU, 3G Partnership Project) has also grown in
terms of the key positions held by Chinese representatives
(Sharma, 2018) [12].
The growth of the global market power of Chinese technology
companies is largely a product of focused government
industrial policy and accompanying funding instruments (Lee,
2018) [9]. Similar to its technological advantage, Huawei’s
affordable pricing is more likely an outcome of China’s
domestic policy than its fundamental technological superiority
over competitors (MOFCOM, 2018) [10]. Preferential treatment
of domestic providers means that the latter control 75 percent
of the Chinese market, giving them unbeatable economies of
scale (MOFCOM, 2018) [10].
However, there is a debate on the both sides (the US and
Chinese) whether the decision is related to the US national
security or more like to prevent the Chinese domination in
world technology market. The logics behind such debate
particularly from the Chinese counterpart are twofold. For
instance, the decision was made amid the trade tension
between the two countries when two countries are blaming
each other for not concluding a unified trade agreement. In
fact, there was no unified agreement has reached between the
two giant economies. The last meeting the delegates sat was
on May 10, 2019 without reaching a decision. President
Trump accused China to overrule the agreement and
immediately after two weeks he made this ban decision.
Secondly, according to Huawei and the Chinese counterpart,
this decision has been made to keep the Chinese tech giant out
of the US market which is rapidly growing even in the US
because of its competitive price advantage.
Therefore, it is difficult to comment on the motive of such
decision but it would obviously have some counter effects
which will be discussed on later sections.
4. The tentative consequences
The paper proposes that there will be alternative consequences
if this ban on Huawei persists for long. The after effects will
not be very enjoyable both for the US firms and the general
mobile phone set users all over the world. The tentative after
affects with the alternative have been discussed below:
4.1 Alternative-1: The ban will be relaxed or lifted
If the Huawei ban decision has been made not genuinely on
security issue but as a trade game to push China, there is an
obvious chance to lift such ban or at least to relax it. The logic
for such argument is that as a result of this ban, The Chinese
government will be encouraged to ban all the western
technological companies in China such as iPhone, Lenovo,
Dell, HP etc. (Already Google is forbidden in China). This
will severely affect the sales and revenues of those firms as
China is one of the biggest consumer markets for tech
products. In fact, the response is already becoming to be
expressed in Chinese media (Techthelead, 2019) [14]. As it is
very logical, there are counter actions for all the actions taken
which is particularly true in bilateral trade. The result will be
the pressure on the Trump administration to ease or
completely lift the ban on Huawei.
International Journal of Commerce and Economics
24
4.2 Alternative-2: The ban will continue
If however, the ban on Huawei will continue for a long time,
there would different consequences. Huawei will be
encouraged to develop its own operating system and use it on
their mobile phone sets. The company has price advantage and
already a large consumer base. In the beginning, the company
will face some challenges as the consumers prefer the Google
operating systems to be installed on the phone set. This will
slow down their sales a bit for the time being. But slowly the
consumers will be used to with the new operating system and
the company can regain its market. Another effect will be
retaliative actions taken by the Chinese government as a
response to Huawei ban making the US firms suffer a lot in
the long term. Furthermore, such ban will reignite the present
trade conflict between the US and China (Hosain & Hossain,
2019) [7].
5. The effects on consumers
As already noted, Huawei has a large customer base in Asia,
Africa and some European countries. Those who cannot use
expensive mobile sets like iPhone or Samsung are the main
customers of the cheap mobile sets like Huawei. Those
customers, at least initially will not prefer to use Huawei sets
without Google operating systems add on. But there are a lot
of Chinese customers in Asia Pacific region who would
continue to use the set as they know Mandarin. But Huawei
can slowly develop their own operating software and may
translate it into English that would attract the normal, lower
end customers. Huawei CEO Fen has already declared that
they are ready to challenge and they want to be the supreme in
technology market which is now mostly dominated by the US
(South China Morning Post, 2019) [13]. The net effect will be a
serious collision with the US market share in Asia and Africa
where most of the consumers live particularly in South and
East Asia.
6. Implications of the study
The paper is the first one to be published regarding this
incident. It is expected to pour some technical and theoretical
lights on the bottom lines of such decision. It is expected
further to open new avenues for conducting some in depth
research in this fairly new phenomenon.
7. Limitations and further scope
The study is limited to theoretical phase on the basis of
published news and a few articles published. The author
expects that further studies will be conducted on this based on
data and some more facts.
8. Conclusion
As the first paper on this very recent incident, the author has
tried to discuss the alternative consequences of this sudden
decision. One thing for sure is that Huawei ban in the US will
not bring any positive impact for both parties and for the
general consumers of mobile sets although it will certainly
take some time to see the real impact and further results. But it
will not bring any blessings if the two counterparts and
world’s largest and second largest economies (US and China)
engage in trade wars and nasty blaming to each other.
Therefore, it would be wise to solve the problem by not
blaming each other, rather discussing it in a cooperative and
sacrificing manner.
References
1. BBC. Ren Zhengfei says the US underestimates Huawei
strengths. Available at, 2019:
https://www.bbc.com/news/business-48345742. Accessed
on: 26 May, 2109.
2. Bloomberg. Top US tech companies begin to cut off vital
Huawei suppliers. Available at, 2019:
https://www.bloomberg.com/news/articles/2019-05-
19/google-to-end-some-huawei-business-ties-after-trump-
crackdown. Accessed on: 26 May, 2019.
3. Cnet.com. Available at:
https://www.cnet.com/news/huawei-ban-full-timeline-on-
how-why-its-phones-were-banned-security/ Accessed on,
2019.
4. CKGSB. Good signals: Huawei pushes further forward.
Available at, 2019: http://knowledge.ckgsb.edu.cn/2017/
03/27/china-business-strategy/huawei-strategy-push-
forward/. Accessed on: 26 May, 2019.
5. CNN. ‘Huawei arrest: This is what the start of a tech
Cold War looks like’. Available at, 2018:
https://m.cnn.com/en/article/h_9345b23ca7053f08332030
a63d7e3329. Accessed on: 22 May, 2019.
6. Frank JC, Sharon LC. What’s wrong with Huawei and
why are countries banning the Chinese
telecommunications firm? The Conversation, 2018.
Available at: https://theconversation.com/whats-wrong-
withhuawei-and-why-are-countries-banning-the-chinese-
telecommunications-firm-1090369. Accessed on: 23 May,
2019.
7. Hosain MS, Hossain MS. US-China trade war: Was it
really necessary? International Journal of Business and
Economics. 2019; 4(1):21-32.
8. Kaska K, Beckvard H, Minárik T. Huawei, 5G and China
as a security threat. NATO Cooperative Cyber Defence
Centre of Excellence. Tallinn, Estonia, 2019.
9. Lee J. The rise of China’s tech sector: The making of an
internet empire. The Interpreter, Lowy Institute. Available
at, 2018: https://www.lowyinstitute.org/the-interpreter/
rise-china-s-tech-sector-making-internet-empire/Retrie
ved from: Adam Segal, ‘When China Rules the Web:
Technology in Service of the State’’. Foreign Affairs,
September/October 2018. Accessed on, 2019.
10. Ministry of Commerce (MOFCOM). China: Market
Challenges. Export. gov, 2018. https://www.export.gov
/article? id=China-Market Challenges. Accessed on,
2019.
11. Nikkei Asian Review. Germany’s Infineon suspends US
shipments to Huawei. Available at, 2019:
https://asia.nikkei.com/Economy/Trade-war/Germany-s-
Infineon-suspends-US-shipments-to-Huawei. Accessed,
2019.
12. Sharma P. 5G ecosystem: Huawei’s growing role in 5G
technology standardization. Counterpoint Research, 2018.
Available at: https://www.counterpointresearch.co m/
huaweis-role-5g-standardization/10. Accessed on, 2019.
International Journal of Commerce and Economics
25
13. South China Morning Post. Conflict with the US was
inevitable sooner or later. Interview with Ren Zhenfei.
Available at, 2019:
https://www.scmp.com/tech/article/3011048/huawei-
founder-ren-zhengfei-says-clash-us-was-inevitable.
Accessed on, 2019.
14. Techthelead. Chinese media says it’s now an
embarrassment to use an iPhone in the country. Available
at, 2019: https://techthelead.com/chinese-media-says-its-
now-an-embarrassment-to-use-an-iphone-in-the-country/?
utmsource=facebook&utm_medium=socialmedia&utmca
mpaign=chinese_media&fbclid=iwar1pkr2mkjchojthaozf
m12lt-UBGCqQF_cbaqYJ7Qh1IqXB wa0wmFS39xY.
Accessed on 26 May, 2019.
15. The Guardian. Can Huawei survive an onslaught of bans
and restrictions abroad? Available at, 2018.
https://www.economist.com/business/2018/12/15/can-
huawei-survive-an-onslaught-of-bans-and-restrictionsa
broad/ Global Smartphone Market Share: By Quarter.
Counterpoint, 2018.
... However, before proceeding further, we should closely look into the facts further as described in the following sections. First, it should be noted that even for the medium quality products, the Chinese ones are the cheapest in the world (Hosain, 2019). Till the beginning of 2020, India was the largest trading partner of China importing near about 14 percent of its products from China and it is growing every year (Trading Economics, 2020). ...
Article
Full-text available
Being two giant economic players of the world, China and India experienced a disastrous border conflict in the Ladakh area of the Line of Actual Control (LAC) during April 2020, just at the beginning of the Covid-19 outbreak. This theoretical paper is an effort to identify the tentative impact of that border clash on the bilateral trade between two countries from the perspective of regional geopolitics. The author has utilized secondary information such as newspapers articles, journal articles, online sources, and economists’ opinions on this issue as well as has made some predictions based on the previous bilateral trade statistics. The author proposes that even though the border issue has become very sensitive and important for both countries regarding the geopolitical necessity, the bilateral trade scenario will not be much affected on a substantial scale on a long-term basis. The author further predicts that a likely trade conflict between the two economically promising countries will be contagious for both. Finally, the author expects this paper to be beneficial for further research attempts focusing on the geopolitical economy of bilateral trade.
... [4] In the light of the current global resource crisis in part due to the Covid-19 Pandemic -which slowed the global economy, but also due to lowering resource supply in general in combination with long waiting times for basic communication equipment [1]. Especially the ban on Huawei´s communication technology participation in network expansion in the US [5] and some parts of Europe is bound to slow down the development of infrastructure significantly in the light of security concerns about Chinese power projection. The eyes turn towards a software solution, and perhaps D2D can be of assistance here. ...
Research Proposal
Full-text available
With the rapid growth of communication networks around the world the necessity for larger and better-optimized networking schemes is now clearer than ever. The pathway to optimizing this is unclear, however, as many different interpretations of the optimal relay scheme have been proposed in the communication sector. High costs of network extensions due to rising resource prices and ever-increasing demand for bandwidth bring down pressures on the networking market and call for optimization and innovation. This innovation might come in the form of Device to Device (D2D) Communication, through which the Central Broadcasting Hub is helped in serving the client devices by other clients, relaying information among each other. In the following sections two of those schemes will be presented and compared-a Device-Centric Scheme[7] and a Network-Centric Scheme[6]-afterward a reality check is performed-where they have modern use-cases and where they might fall flat, and why they both might be more similar then the authors want to acknowledge.
... We know that these two technologies are very common in the larger population. Giant corporations, such as Huawei, did not also survived from Trump's "rampage," with the Chinese telecommunications giant accused of leaking US national security data to China through Huawei's contract with the US security authorities (Hosain, 2019). As a result, many US firms were forced to cancel contracts with Huawei or face sanctions. ...
Article
Full-text available
This paper has made an attempt to theoretically predict the US-China trade relationship under the Joe Biden administration formed after the US presidential election in 2020. The author has utilized the published sources such as journal articles, newspapers and Internet to seek secondary information. The author argues that, after evaluating the information, China will continually be under pressure regarding the bilateral trade from the current US administration. The pressure will be the outcome of aggregate US national interest (trade and political) and the long-term US opposing culture against China’s rise (economically and politically). However, the author further expects that such opposition will not be as severe as the Trump administration’s period. The paper is expected to be useful for the trade analysts, top managements of multinational corporations and researchers alike for conducting new policy analysis and further research investigations regarding bilateral trade in a disputed political context.
... In emerging countries, Huawei became a brand that people respected and considered worship. However, while Huawei gained the confidence of China, emerging countries, and part of the European countries, other countries such as the USA and Germany have recently started to distrust the company due to its extremely close relationship with the Chinese government and due to strong accusations on the Chinese government using Huawei devices to spy on the USA and its allies (Hosain 2019). The company also faced similar challenges with international countries in 2008 when Huawei found itself in the middle of a public due to the suicide incidents. ...
Book
This book presents a rich compilation of real-world cases on digitalization, aiming to share first-hand insights from renowned organizations and to make digitalization tangible. With all economic and societal sectors being challenged by emerging technologies, the digital economy is highly volatile, uncertain, complex, and ambiguous. It confronts established organizations with substantial challenges and opportunities. Against this backdrop, this book reports on best practices and lessons learned from organizations that succeeded in tackling the challenges and seizing the opportunities of the digital economy. It illustrates how twenty organizations leveraged their capabilities to create disruptive innovation, to develop digital business models, and to digitally transform themselves. These cases stem from various industries (e.g. automotive, insurance, consulting, and public services) and countries, covering the many facets that digitalization may have. As all case descriptions follow a unified template, they are easily accessible for readers and provide insightful examples for practitioners as well as interesting cases for researchers, teachers, and students. "Almost every organization is trying to figure out how best to respond to the opportunities and threats posed by digitalization. This book provides valuable lessons from those organizations that have already begun their digital transformation journey." (Michael D. Myers, Professor of Information Systems, University of Auckland) "Digitalization Cases provides firsthand insights into the efforts of renowned companies. The presented actions, results, and lessons learned are a great inspiration for managers, students, and academics. This book gives real pointers on the how and where to start." (Anna Kopp, Head of IT Germany, Microsoft) "The cases compiled in the second volume of Digitalization Cases show how disruption can actively be managed. Further, long-term insights from extended success stories of the first edition highlight that courage to change pays off well. This book represents a motivation for organizations to drive their digital transformation journeys actively." (Markus Richter, State Secretary at the Federal Ministry of the Interior, Building and Community and Federal Government Commissioner for Information Technology, Germany)
... First, firms are less capable of obtaining the diverse specialized knowledge and technology available in different 'centres of excellence' around the globe. The Huawei ban in the US market, as well as the limited access to chip supply, is just an example (Hosain, 2019). Backlashes against globalization make countries more sensitive and cautious in terms of protecting their intellectual property from spilling over to other competitors in the name of national security. ...
Article
Full-text available
The China-US trade war is one of the largest trade wars and has been a hot topic in the global economy since 2018. In this paper, we will explore the impact of the China-US trade war on Chinese industries by collecting and analyzing previous information. We find that the start of the US-China trade war will negatively affect three aspects of Chinese industry. At the same time, the China-US trade war has led China to carry out innovation and breakthroughs.
Article
Full-text available
أثبت تاريخ الحركة الصهيونية ممثلة في مشروعها السياسي، إقامة الدولة اليهودية، أنها لا تستطيع أن تستمر دون وجود دولة عظمى تحميها وتحفظ مصالحها وتتبنى روايتها. فقد انتقل مركز الصهيونية عبر التاريخ إلى ثلاثة عواصم صاعدة رئيسية وهي على التوالي: برلين، لندن، وواشنطن. وتشير هذه الورقة إلى أن هناك بوادر لظهور ما تطلق عليه "الصهيو-صينية"، أي الإنتقال الرابع إلى الصين كدولة صاعدة مناهضة للهيمنة الأمريكية. تماهت السياسة الخارجية الإسرائيلية مع الولايات المتحدة ضد الإتحاد السوفييتي فترة الحرب الباردة. ولكن، مع الصعود الصيني واحتدام المنافسة مع واشنطن، اتخذت إسرائيل منذ عام 2010، سياسات إما مناهضة لواشنطن أو حيادية تجاه القضايا المحورية في التنافس بين الطرفين، والتي بدأتها بالإعلان عن إستراتيجية التوجه نحو آسيا وخاصة نحو الصين والهند. بعد عامين، أي عام 2013، بدأت إسرائيل توسع مجالات التعاون مع الصين بشكل كبير إلى أن أصبحت اليوم الشريك التجاري الأول لها في آسيا والثالث عالميًا بعد الولايات المتحدة والإتحاد الأوروبي. تفترض هذه الورقة أن إسرائيل سعت لتعزيز علاقتها مع الصين بفعل ثلاثة عوامل رئيسية وهي، التحالف مع الأقوياء للحفاظ على البقاء، التوجه نحو آسيا لتعزيز الإقتصاد الإسرائيلي في كافة المجالات، وأخيرًا، خلق هامش جديد وواسع للمناورة مع الولايات المتحدة والتهرب من أي ضغوطات مستقبلية محتملة. تتوزع الورقة على ثلاثة أقسام تحلل هذه العوامل، حيث يناقش الأول الإستراتيجية والممارسة الصهيونية إزاء صعود وهبوط القوى العظمى منذ أواخر القرن التاسع عشر، ويحلل القسم الثاني مؤشرات وعناصر ما سمكن وصفه بـ "الصهيو-صينية" والتوجه الإسرائيلي نحو آسيا منذ عام 2010، أما القسم الآخير فيناقش قدرة إسرائيل على خلق مجال للمناورة مع أمريكا من عدمه في علاقتها مع الصين كقوة صاعدة.
Chapter
Situation faced: Huawei has surpassed companies such as Ericsson, Nokia Network Solutions, and Motorola Solutions and thus became the biggest telecommunication firm in China and the third world biggest telecommunication firm right after Apple Inc. and Samsung Group. Despite the success achieved by the company today, Huawei had a humble and rigorous beginning. In order for Huawei to become a worldwide recognized company with a high reputation, the company had to overcome four main challenges: (1) country of origin, (2) liability of foreignness, (3) latecomer effects, and (4) lock-in effects.
Article
This article explores the actions of Chinese stakeholders as norm entrepreneurs in mobile Internet standard-making within the 3rd Generation Partnership Project (3GPP). Through semi-structured interviews with key experts from the Internet stakeholder communities, this article contextualises a rapidly transforming and increasingly politicised issue in the broader context of China's engagement with the global multistakeholder Internet governance architecture, as well as the debate on China's rise in the Liberal International Order. Furthermore, it incorporates the views and experiences of technologists working first-hand in standard-making, as they are often disregarded in political-scientific literature. Through the analytical lens of cognitivist regime theory, this article argues that the stronger China and Chinese stakeholders grow economically and politically, the more they become involved in the existing Internet governance regime complex, increasing their influence in the existing institutional arrangements without necessarily acting for changing their norms, rules, and principles. Through these theoretical and methodological approaches, new light is shed on the role of private and public Chinese stakeholders and on the relation between them.
Article
Full-text available
The new global competition between the United States of America (USA) and China is shaped by access to the flows of the networks. This competition intensified particularly on 5G networks. China has already surpassed the USA in the development of 5G technology with its trademark company Huawei and has stepped up its efforts to reach global market. In addition to building railroads and roads, China also engages in developing digital infrastructure for the countries, which legged behind in terms of digital infrastructure. China's efforts of upgrading digital infrastructure include laying out fiber optic cable networks on which 5G networks are built. Huawei also expanded into European countries, which want to upgrade its domestic 5G networks. U.S. government perceives China's digital expansion as a security risk toward infrastructure networks. Hence, it intensified its efforts to restrict Huawei's access to global market. Thus, instead of striving to control of a particular territory, the USA and China seeks to gain influence over networks, hubs, and services. Although China and the USA are main actors, this confrontation includes regional bodies such as the European Union (EU) and multinational companies.
Article
Full-text available
The business world has observed another shocking measure taken by the US president to impose 25% tariffs on Chinese imports worth USD 150 Billion in total to the USA in order to reduce the deficit of US-China bilateral trade. The counter measure was the quick anti-tariff on USD 50 Billion US goods to China. The net result might be the reduction of bilateral trade between the two countries substantially. The most likely conclusion of this country specific impose of tariffs is the substitution of imports from other countries by US importers other than China. While the US trade deficit with China might fall and with other countries it will continue to rise, meaning the US trade deficit with the rest of the world will not be considerably changed. Majority of the experts and economists argue that the combined trade deficit with the rest of the world can only be reduced either by increasing the internal demand and meet that demand by local products (importing less from outside) or simply by exporting more to the other countries. As China has the largest market for many consumer and industrial products, there is a huge potential for the US to increase its exports like agricultural products, energy automobile; and services like education and tourism to Chinese market. The paper aims at discussing the alternatives of imposing tariffs and addressing the concept of-reasonable trade‖. The sources of this descriptive paper are the published news, articles and information in web. The authors are hopeful that this paper will come to the help of academicians wishing to investigate more on this issue and the policy makers of the business world who seek better alternatives of trade war.
What's wrong with Huawei and why are countries banning the Chinese telecommunications firm? The Conversation
  • J C Frank
  • L C Sharon
Frank JC, Sharon LC. What's wrong with Huawei and why are countries banning the Chinese telecommunications firm? The Conversation, 2018. Available at: https://theconversation.com/whats-wrongwithhuawei-and-why-are-countries-banning-the-chinesetelecommunications-firm-1090369. Accessed on: 23 May, 2019.
5G and China as a security threat. NATO Cooperative Cyber Defence Centre of Excellence
  • K Kaska
  • H Beckvard
  • T Minárik
  • Huawei
Kaska K, Beckvard H, Minárik T. Huawei, 5G and China as a security threat. NATO Cooperative Cyber Defence Centre of Excellence. Tallinn, Estonia, 2019.
The rise of China's tech sector: The making of an internet empire. The Interpreter, Lowy Institute
  • J Lee
Lee J. The rise of China's tech sector: The making of an internet empire. The Interpreter, Lowy Institute. Available at, 2018: https://www.lowyinstitute.org/the-interpreter/ rise-china-s-tech-sector-making-internet-empire/Retrie ved from: Adam Segal, 'When China Rules the Web: Technology in Service of the State''. Foreign Affairs, September/October 2018. Accessed on, 2019.
Germany's Infineon suspends US shipments to Huawei
  • Nikkei Asian Review
Nikkei Asian Review. Germany's Infineon suspends US shipments to Huawei. Available at, 2019: https://asia.nikkei.com/Economy/Trade-war/Germany-s-Infineon-suspends-US-shipments-to-Huawei. Accessed, 2019.
Huawei's growing role in 5G technology standardization
  • P Sharma
  • Ecosystem
Sharma P. 5G ecosystem: Huawei's growing role in 5G technology standardization. Counterpoint Research, 2018. Available at: https://www.counterpointresearch.co m/ huaweis-role-5g-standardization/10. Accessed on, 2019.
an-embarrassment-to-use-an-iphone-in-the-country/? utmsource=facebook&utm_medium=socialmedia&utmca mpaign=chinese_media&fbclid=iwar1pkr2mkjchojthaozf m12lt-UBGCqQF_cbaqYJ7Qh1IqXB wa0wmFS39xY
  • Techthelead
Techthelead. Chinese media says it's now an embarrassment to use an iPhone in the country. Available at, 2019: https://techthelead.com/chinese-media-says-itsnow-an-embarrassment-to-use-an-iphone-in-the-country/? utmsource=facebook&utm_medium=socialmedia&utmca mpaign=chinese_media&fbclid=iwar1pkr2mkjchojthaozf m12lt-UBGCqQF_cbaqYJ7Qh1IqXB wa0wmFS39xY. Accessed on 26 May, 2019.
Can Huawei survive an onslaught of bans and restrictions abroad? Available at
  • The Guardian
The Guardian. Can Huawei survive an onslaught of bans and restrictions abroad? Available at, 2018. https://www.economist.com/business/2018/12/15/canhuawei-survive-an-onslaught-of-bans-and-restrictionsa broad/ Global Smartphone Market Share: By Quarter. Counterpoint, 2018.
Huawei arrest: This is what the start of a tech Cold War looks like
CNN. 'Huawei arrest: This is what the start of a tech Cold War looks like'. Available at, 2018: https://m.cnn.com/en/article/h_9345b23ca7053f08332030 a63d7e3329. Accessed on: 22 May, 2019.
China: Market Challenges
Ministry of Commerce (MOFCOM). China: Market Challenges. Export. gov, 2018. https://www.export.gov /article? id=China-Market Challenges. Accessed on, 2019.