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The U.S. should not demonize Huawei – it should invest to compete

Seeking to undermine China’s legitimate rise will create a new technology iron curtain and increase the risk of conflict.

The U.S. should not demonize Huawei – it should invest to compete
Imaginechina/SIPA USA/PA Images
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History has shown that technological and industrial rivalry between Great Powers, such as the Britain-Germany steel race before World War I, can be the gateway to military conflict. The actions being taken by the U.S. against the Chinese technology firm Huawei are the opening salvos in a dangerous technology war which may be a slippery slope towards dire consequences.

Why is the U.S. administration seeking to exclude Huawei from global markets and supply chains? This goes far beyond legitimate national security concerns and is aimed at bringing down Huawei which has had the temerity to challenge U.S. technology hegemony. It is part of an exercise to contain, disable or derail China’s remarkable economic revival. It has the look of a technology-age equivalent of the U.S. attempt to “contain” China after 1949.

It is true that in its early days Huawei used technology theft to gain market advantage. But the reason the U.S. administration fears Huawei is that through being an avid learner of Western business practices and through spending 15% of its revenues on R&D, Huawei has to a great extent passed from the model of catchup and imitation to one whereby it is innovating.