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Thursday 16 July 2020

The real reason why America blocks Huawei?


Business is the real reason behind blocking of Huawei by America. For the last couple of years two things are happening in between China and USA. One is that US trade deficit is narrowing but still substantial at US$ 350 Billion while the second one is US techno edge over China is shrinking at an alarming pace.

Huawei is the real reason for both of these happenings. America relies on hardware and software sales in various fields including telecommunication, information technology and robotics that have dual use both in civil and military applications. This morphs into security and surveillance issue on one side and cyberspace issue on the other. US dominance is now being challenged by Huawei in this field. Its Fifth generation techno revolutionizes not only the speed but pinpoint accuracy too.

America needs captive markets to survive only if she can keep supremacy in science & technology. To do that Five Eyes Alliance was formed.  

Five Eyes: Original partners are USA together with Australia, Canada, New Zealand and UK

Five Eyes Plus: The existing alliance was extended to include Denmark, France, Holland and Norway to form Nine Eye alliance

Nine Eyes Plus: Further extension was made after roping in Belgium, Germany, Italy, Spain and Sweden to make it Nine Eyes Plus

Associates: Nine Eyes Plus allowed the following countries to function as Associates: Japan, Israel, Singapore and South Korea.

America wants to block Huawei by every member countries in Nine Eyes Plus as well as by the Associates. After announcing the blocking of Huawei America sounded that all Alliance partners must act like a herd in blocking Huawei totally. But the question is whether US can beat Huawei? It is clear that Huawei has sped fast America in 5G and is already investing on the Sixth Generation. Despite arm twisting the result so far is not convincing that US can secure her dominance.

For example out of the Five Eyes only Australia and New Zealand blocked Huawei fully. UK opted for partial blocking along with Holland the latter in Five Eyes Plus. In the Nine Eye Plus grouping only Germany expressed concern without any concrete actions. Surprisingly, the most enthusiastic supporters were found amongst the Associates. Japan joined South Korea to block Huawei. Singapore played it with deft diplomacy by calling for tenders and thereafter persuading SingTel to opt for the package given by Nokia & Ericsson.

 
Cheers!

 
Muthu Ashraff Rajulu
Business Strategist
Mobile: + 94 777 265677


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