Huawei is the Target of Bipartisan Effort from Republicans and Democrats
US-China trade war is cooling down, but worse is not yet over for Huawei
The US has one common approach recently, despite impeachment proceedings against President Trump. It is the bipartisan effort to stop the journey of the second-largest Smartphone maker – Huawei. In an event at Allied headquarters, US House Speaker Nancy Pelosi urged allies of the US in the EU not to trust Huawei. This bipartisan effort approach is similar to Mr. Trump’s approach against the Chinese company. It is surprising amid quite successful talks between China and the United States over trade, especially after China has granted tariff exemptions for additional US goods. It makes the issue serious and brings the consensus between both parties in the US.
During the visit by Pelosi to Brussels, she made clear that any NATO ally should not allow Chinese tech company Huawei to have access to next-generation cellular networks. She was not ambiguous in her words, and she termed the company as it is like the Chinese State Police. It is to remember that the EU is heading towards 5G technology, and many countries in Europe are allowing the company to do business freely. It is quite the opposite of the approach of the US that is mulling over to cut it off from global chip suppliers.
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What is the bipartisan effort against Huawei?
Pelosi did not convince the EU allies during her visit through emotional statements and bipartisan effort approach. Instead, she used arguments that seemed to be backed by evidence. She said that Huawei might be cheaper than other options available to allies. But she gave its credit to Western systems that the company knew.
Some might say that she used quite an aggressive language that showed her unambiguous stance over the issue. She termed the company as the initiative of the People’s Liberation Army that used reverse engineering from western technology. She warned allies that they would fall in the hands of Chinese power once the company gets a market share of the EU market. She threatened that China does not have respect for privacy because it has an autocratic approach towards it.
On the other hand, President Trump’s arguments revolve around national security issues. Pelosi also raises some concerns about the company. Huawei is not a small company, but it is the world’s largest telecommunication equipment manufacturer. Trump’s administration blamed the company that it would give access to Chinese officials to data. The company denies this charge.
Now, Trump and Pelosi are on the same page on this issue. So, it has become a bipartisan effort. It is although a notable ally of the US, Britain has allowed the company to participate in its network. However, it has announced that it would not allow the company to have access to sensitive areas of the network.
Possible Actions of the US
Amid cooling the US-China trade war, stand against Huawei has gone harder and more solid. Reports have confirmed that Trump administration is considering changing US regulations to block shipments to Huawei Technologies. As a result, companies as big as Taiwan’s TSMC would no longer sell chips to Huawei. It is worth noting that Taiwan’s TSMC is the largest contract chipmaker global. This change in the regulations is not certain because it would greatly change the Foreign Direct Product Rule.
This rule subjects foreign company to the US regulations if they use US technologies. This change is aimed at containing Huawei, but many US allies may not be happy with it. However, a bipartisan approach by Republicans and Democrats can make it happen. The battle for global technological dominance has got severe. Huawei is at the center of this battle, and this battle is going to be intense in the future.